1.Analyze which company has the highest or the lowest:

1Operating margin

2Asset Turnover

3Capital investment Leverage

4Inventory holding period

Why ?

2.According to the indicators in the picture, which company is more likely to sell high-end goods and which company is more likely to sell cheap goods

\begin{tabular}{l|r|rr|r|} & \multicolumn{1}{c|}{ Kohls } & Nordstrom & \multicolumn{1}{l}{ Ross } \\ \hline Advanced Dupont Model & fiscal 2009 & fiscal 2009 & fiscal 2009 \\ \hline Net Operating Margin & 0.063 & 0.062 & 0.062 \\ \hline x Net Operating Asset Turnover & 1.834 & 2.182 & 5.856 \\ \hline = Return on Net Operating Assets & 0.115 & 0.135 & 0.366 \\ \hline Net Borrowing Cost (NBC) & 0.040 & 0.037 & 0.039 \\ \hline Spread (RNOA - NBC) & 0.074 & 0.099 & 0.327 \\ \hline Financial Leverage (LEV) & 0.284 & 1.843 & 0.139 \\ \hline ROE = RNOA + LEV*Spread & 0.136 & 0.317 & 0.411 \\ \hline & Kohls & Nordstrom & Ross \\ \hline Margin Analysis & fiscal 2009 & fiscal 2009 & fiscal 2009 \\ \hline Gross Margin & 0.378 & 0.419 & 0.258 \\ \hline EBITDA Margin & 0.100 & 0.133 & 0.101 \\ \hline EBIT Margin & 0.100 & 0.097 & 0.101 \\ \hline Net Operating Margin (b4 non-rec. & 0.062 & 0.061 & 0.062 \\ \hline Net Operating Margin & 0.063 & 0.062 & 0.062 \\ \hline & & & \\ \hline Turnover Analysis & & & \\ \hline Net Operating Asset Turnover & 1.834 & 2.182 & 5.856 \\ \hline Net Working Capital Turnover & 6.853 & 4.002 & 15.731 \\ \hline Avge Days to Collect Receivables & 0.000 & 84.132 & 5.062 \\ \hline Avge Inventory Holding Period & 97.778 & 65.431 & 60.073 \\ \hline Avge Days to Pay Payables & 34.949 & 46.926 & 41.005 \\ \hline PP\&E Turnover & 2.454 & 3.866 & 7.584 \\ \hline \end{tabular} FIGURE 5.6: Advanced DuPont Model for Kohl's, Nordstrom and Ross Stores in fiscal 2009