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Compute ROA, Profit Margin and Asset Turnover for Competitors Selected balance sheet and income statement information from Urban Outfitters, Inc. and TJX Companies, clothing retailers

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Compute ROA, Profit Margin and Asset Turnover for Competitors Selected balance sheet and income statement information from Urban Outfitters, Inc. and TJX Companies, clothing retailers in the high-end and value-priced segments, respectively, follows (in millions). 2017 2017 2017 2016 Company Sales EWI* Total Assets Total Assets Urban Outfitters $3,616 $108 $1,953 $1,903 TJX Companies 35,865 2,653 14,058 12,884 *EWI = Earnings without interest expense a. Compute the 2017 return on assets (ROA) for both companies. Round answers to one decimal place (i.e., 0.2568 = 25.7%). Urban Outfitters % TJX Companies % b. Disaggregate ROA into profit margin (PM) and asset turnover (AT) for each company. Confirm that ROA = PM XAT. Do not round until your final answers. Round PM and ROA to one decimal place (i.e., 0.2568 = 25.7%). Round AT to 3 decimal places. PM X AT = ROA Urban Outfitters % TJX Companies

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