Kirby, Inc , one of the largest home improvement retailers, reported the following information (adapted) in its comparative financial statements for the fiscal year ended January 31, 2015 Requirements 1 Compute net profit margin ratio for the years ended January 31, 2015 and 2014 Did it improve or ...

Kirby, Inc., one of the largest home improvement retailers, reported the following information (adapted) in its comparative

Question:

Kirby, Inc., one of the largest home improvement retailers, reported the following information (adapted) in its comparative for the fiscal year ended January 31, 2015:

Requirements
1. Compute net profit margin ratio for the years ended January 31, 2015 and 2014. Did it improve or worsen in 2015?
2. Compute asset turnover for the years ended January 31, 2015 and 2014. Did it improve or worsen in 2015?
3. Compute return on assets for the years ended January 31, 2015 and 2014. Did it improve or worsen in 2015? Which component (net profit margin ratio or asset turnover) was mostly responsible?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Asset Turnover
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio.