b. Comment on any differences among the companies' gross profit-to-sales ratios and net income as a per-

centage of sales. Do differences in the companies' business models explain the differences observed?

c. Which company reports the highest ratio of net income to equity? Suggest one or more reasons for

this result.

d. Which company has financed itself with the highest percentage of liabilities to equity? Suggest one

or more reasons why this company can take on such debt levels.

Gross profit ratio profit margin ratio Return on equity Target Corp 0.29 0.04 0.26 Nike Inc. 0.44 0.05 0.20 Harley-Davidson 0.41 0.09 0.30 Pfizer 0.79 0.21 0.18