Question: Compute ROA, Prot Margin, and Asset Turnover for Competitors Selected balance sheet and income statement information from Urban Outtters, Inc., and TJX Companies, clothing retailers
Compute ROA, Prot Margin, and Asset Turnover for Competitors Selected balance sheet and income statement information from Urban Outtters, Inc., and TJX Companies, clothing retailers in the high-end and value-priced segments, respectively, follows.
a. Compute the 2019 return on assets (ROA) for both companies.
b. Disaggregate ROA into prot margin (PM) and asset turnover (AT) for each company. Conrm that ROA = PM AT. c. Discuss dierences observed with respect to PM and AT, and interpret these dierences in light of each companys business model.
c. Discuss dierences observed with respect to PM and AT, and interpret these dierences in light of each companys business model.

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