Gildan Activewear Inc. reported the following selected financial information (all in U.S. $ millions): net sales of $2,415 in 2015, $2,360 in 2014, and $2,184 in 2013. The company also reported net income of $237 in 2015, $360 in 2014, and $320 in 2013. Assets at the end of 2015 were $2,911; at the end of 2014, $2,593; and at the end of 2013, $2,044.
(a) Calculate Gildan's
(1) Asset turnover,
(2) Profit margin, and
(3) Return on assets for 2015 and 2014.
(b) Comment on whether the return on assets changed primarily due to a changing asset turnover or a changing profit margin.