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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 EW* Total Assets Total Assets Urban Outfitters 53.323 $232.4 $1,889 $2.221 TJX Companies 29,078 2.241 11.128 10,201 *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 - PMX AT. Do not round until your final answers. Round PM and ROA to one decimal place de, 0.2568 25.7%). Round AT to 3 decimal places. PMX AT - ROA Urban Outfitters TX Companies

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