Tiffany & Co. is one of the world's premier jewelers and a designer of other fine gifts and housewares. Presented here are selected income statement and balance sheet amounts (dollars in thousands).

Required:
1. Compute ROA for the current and prior years and explain the meaning of the change.
2. Explain the major cause(s) of the change in ROA using ROA profit driver analysis.

Transcribed Image Text:

Net sales Net income Average shareholders' equity Average total assets Current Year $3,642,937 2,263,190 , 3,947,331 Prior Year S3,085,290 368,403 2,030,357 3,612,015 439,190