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Comparing Abercrombie & Fitch and TJX Companies Following are selected financial statement data from Abercrombie & Fitch (ANF-upscale clothing retailer) and TJX Companies (TJX-value-priced clothing
Comparing Abercrombie & Fitch and TJX Companies Following are selected financial statement data from Abercrombie & Fitch (ANF-upscale clothing retailer) and TJX Companies (TJX-value-priced clothing retailer including TJ Maxx) -- both dated the end of January 2009 or 2008. ($ millions) Company Total Assets Net Income Sales TIX Companies Inc. $6,600 2009 TIX Companies Inc. 6,178 $881 $19,000 Abercrombie & Fitch 2,568 Abercrombie & Fitch 2,848 272 3,540 2008 2008 2009 a. Compute the return on assets for both companies for the year ended January 2009. Round your answers to one decimal place. b. Disaggregate the ROAs for both companies into the profit margin and asset turnover. Round profit margin answers to one decimal place. Round asset turnover answers to two decimal places. c. What is a likely interpretation of the results of your computations for parts a and b
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