Question: Maximizing return on equity involves a trade-off between operating profitability (margin on sales) and turnover (efficiency of asset utilization). Consider the different business models of

Maximizing return on equity involves a trade-off between operating profitability (margin on sales) and turnover (efficiency of asset utilization). Consider the different business models of

• A closeout e-tailer, such as Overstock.com (OSTK).

• A regular e-tailer, such as Amazon.com (AMZN).

• A traditional closeout retailer, such as Ross Stores (ROST).

• A department store retailer, such as May Department Stores (MAY).

Discuss how the different business models involved in each of these categories will influence the trade-off between profitability and turnover. (Compare Overstock.com vs. AMZN, ROST, MAY)

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