Analyzing and Interpreting Return on Assets Tiffany & Co. is one of the worlds premier jewelers and

Question:

Analyzing and Interpreting Return on Assets
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 amounts (dollars in thousands).

Current Year Prior Year $2,859,997 220,022 $2.938,771 323,478 Net sales Net income Average shareholders' equity Average

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 driveranalysis.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...