Calculation, Analysis and Interpretation of Return on Capital and Return on Assets The following is summary data from the financial statements of Nordstrom Inc. for the fiscal years ending 2014-2016.

 Millions of dollars 2016             2015            2014 

Sales$                    14,095        $13,110          $12,166 

Net income              600              720                 734

Total assets           7,698             9,245            8,574

Equity.                      871             2,440              2,080

Required

a. Calculate return on assets and return on equity for the fiscal years ending in 2015 and 2016 (use average assets and average equity), along with components of ROA (profit margin and asset turnover). What trends, if any, do we observe?

b. What component, if any, seems to be driving the change in ROA over this time period?