Profitability analyses for three companies. The following data show five items from the financial statements of three companies for a recent year (amounts in millions):

a. Compute the rate of return on assets for each company. Disaggregate the rate of return on assets into profit margin and total assets turnover components.

b. Compute the rate of return on common shareholders' equity for each company. Disaggregate the rate of return on common shareholders' equity into profit margin, total assets turnover, and leverage ratio components.

c. The three companies are Harley Davidson (manufacturer of brand-name motorcycles), Southwest Airlines (provider of airline services), and Starbucks (operator of specialty retail coffee shops). Which of the companies corresponds to A, B, and C? What clues did you use in reaching your conclusions?

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For Year Revenues Income before Interest and Related Taxesa Net Income to Common Shareholdersb Average during Year Total Assets .... Common Shareholders' Equity.. "Net Income [Interest Expense (1 - Tax Rate)] Net Income Preferred Stock Dividends Company A Company B Company C $1,308 $1,763 $3,817 69 174 359 68 174 318 925 1,449 3,985 664 745 1,829