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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). 2014 2014 2014 2013 Company Sales EWI* Total Assets Total Assets Urban Outfitters $2,820 $207.4 $1,386 $1,718 TJX Companies 27,068 2,041.0 9,626 8,699 *EWI = Earnings without interest expense a. Compute the 2014 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 X AT. 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 AT Urban Outfitters TJX Companies % % ROA % %

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