Profitability analysis for two types of retailers. Information taken from recent annual reports of two retailers appears as follows (amounts in thousands). One of these companies is TJX, a discount store chain featuring name-brand clothing, and the other is The Gap, a specialty retailer of apparel. The income tax rate is 35 percent. Indicate which of these companies is TJX and which is The Gap. Explain your reasoning using appropriate financial ratios.

Transcribed Image Text:

Sales .. Interest Expense Net Income... Company A Company B $6,507,825 $7,389,069 4,502 306,592 533,901 Average Total Assets 2,982,215 2,585,422