b. Disaggregate the ROA's computed into profit margin (PM) and asset turnover (AT) components. Which of these factors drives ROA for each company?

L02, 3 P5-38. Analysis and Interpretation of Return on Investment for Competitors The Home Depot, Inc. NYSE : HD Lowe's Companies, Inc. NYSE : LOW Balance sheets and income statements for The Home Depot, Inc., and Lowe's Companies, Inc., follow. Refer to these financial statements to answer the requirements. Cambridge Business Publishers Chapter 5 Analyzing and Interpreting Financial Statements 261