=+b. What conclusions can be drawn from these data as to the company’s profitability?

Ann Taylor Retail, Inc., sells professional women’s apparel through company-owned retail stores. Recent financial information for Ann Taylor is provided below (all numbers in thousands).

Fiscal Year Ended February 3, 2007 January 28, 2006 Net income $142,982 $81,872 Interest expense 2,230 2,083 February 3, 2007 January 28, 2006 January 29, 2005 Total assets $1,568,503 $1,492,906 $1,327,338 Total stockholders’ equity 1,049,911 1,034,482 926,744