Question: Compute ROA, Profit Margin and Asset Turnover for Competitors Selected balance sheet and income statement information from Urban Outfitters, Inc. and TJX Companies, clothing retailers

 Compute ROA, Profit Margin and Asset Turnover for Competitors Selected balance

Compute ROA, Profit Margin and Asset Turnover for Competitors Selected balance sheet and income statement information from Urban Outfitters, Inc. and TJX Companies, clothing retailers in the high-end and value.priced segments, respectively, follows (in millions). 2014 2014 2014 2013 Company Sales EW* Total Assets Total Assets Urban Outfitters 53.323 $232.4 $1,889 $2.221 TJX Companies 29,078 2.241 11.128 10,201 *EWI = Earnings without interest expense a. Compute the 2014 return on assets (ROA) for both companies. Round answers to one decimal place (i.e., 0.2568 - 25.7%). Urban Outfitters TJX Companies b. Disaggregate ROA into profit margin (PM) and asset turnover (AT) for each company. Confirm that ROA - PMX AT. Do not round until your final answers. Round PM and ROA to one decimal place de, 0.2568 25.7%). Round AT to 3 decimal places. PMX AT - ROA Urban Outfitters TX Companies

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