For the firm that has relatively low ROA, does the source of the problem seem to be the operating profit margin, the asset turnover, or both?

LOW

Balance Sheet				Income Statement
All numbers in thousands	2017	2016		All numbers in thousands	2017
Period Ending	2/2/2018	2/3/2017		Revenue	2/2/2018
Current Assets				Total Revenue	68,619,000
Cash And Cash Equivalents	588,000	558,000		Cost of Revenue	45,210,000
Short Term Investments	102,000	100,000		Gross Profit	23,409,000
Net Receivables	-	-		Operating Expenses
Inventory	11,393,000	10,458,000		Research Development	-
Other Current Assets	689,000	884,000		Selling General and Administrative	15,357,000
Total Current Assets	12,772,000	12,000,000		Non Recurring	-
Long Term Investments	27,000	12,000		Others	-
Property Plant and Equipment	19,721,000	19,949,000		Total Operating Expenses	62,014,000
Goodwill	1,307,000	1,082,000		Operating Income or Loss	6,605,000
Intangible Assets	569,000	-		Income from Continuing Operations
Accumulated Amortization	-	-		Total Other Income/Expenses Net	-1,116,000
Other Assets	895,000	1,365,000		Earnings Before Interest and Taxes	6,605,000
Deferred Long Term Asset Charges	168,000	222,000		Interest Expense	-652,000
Total Assets	35,291,000	34,408,000		Income Before Tax	5,489,000
Current Liabilities				Income Tax Expense	2,042,000
Accounts Payable	6,590,000	6,651,000		Minority Interest	-
Short/Current Long Term Debt	16,995,000	15,699,000		Net Income From Continuing Ops	3,447,000
Other Current Liabilities	2,544,000	2,389,000		Non-recurring Events
Total Current Liabilities	12,096,000	11,974,000		Discontinued Operations	-
Long Term Debt	14,718,000	14,394,000		Extraordinary Items	-
Other Liabilities	1,758,000	1,606,000		Effect Of Accounting Changes	-
Deferred Long Term Liability Charges	19,000	18,000		Other Items	-
Minority Interest	-	-		Net Income
Negative Goodwill	-	-		Net Income	3,447,000
Total Liabilities	29,418,000	27,974,000		Preferred Stock And Other Adjustments	-
Stockholders' Equity				Net Income Applicable To Common Shares	3,447,000
Misc. Stocks Options Warrants	-	-
Redeemable Preferred Stock	-	-
Preferred Stock	-	-
Common Stock	415,000	433,000
Retained Earnings	5,425,000	6,241,000
Treasury Stock	11,000	-240,000
Capital Surplus	22,000	-
Other Stockholder Equity	11,000	-240,000
Total Stockholder Equity	5,873,000	6,434,000
Net Tangible Assets	3,997,000	5,352,000

HD

Balance SheetAll numbers in thousands	2017	2016		Income Statement
Period Ending	1/28/2018	1/29/2017		All numbers in thousands	2017
Current Assets				Revenue	1/28/2018
Cash And Cash Equivalents	3,595,000	2,538,000		Total Revenue	100,904,000
Short Term Investments	-	-		Cost of Revenue	66,548,000
Net Receivables	1,952,000	2,029,000		Gross Profit	34,356,000
Inventory	12,748,000	12,549,000		Operating Expenses
Other Current Assets	638,000	608,000		Research Development	-
Total Current Assets	18,933,000	17,724,000		Selling General and Administrative	17,864,000
Long Term Investments	-	-		Non Recurring	-
Property Plant and Equipment	22,075,000	21,914,000		Others	-
Goodwill	2,275,000	2,093,000		Total Operating Expenses	86,223,000
Intangible Assets	563,000	-		Operating Income or Loss	14,681,000
Accumulated Amortization	-	-		Income from Continuing Operations
Other Assets	683,000	1,235,000		Total Other Income/Expenses Net	-983,000
Deferred Long Term Asset Charges	119,000	91,000		Earnings Before Interest and Taxes	14,681,000
Total Assets	44,529,000	42,966,000		Interest Expense	-1,057,000
Current Liabilities				Income Before Tax	13,698,000
Accounts Payable	7,244,000	7,000,000		Income Tax Expense	5,068,000
Short/Current Long Term Debt	27,028,000	23,601,000		Minority Interest	-
Other Current Liabilities	1,859,000	1,694,000		Net Income From Continuing Ops	8,630,000
Total Current Liabilities	16,194,000	14,133,000		Non-recurring Events
Long Term Debt	23,335,000	22,349,000		Discontinued Operations	-
Other Liabilities	2,614,000	2,151,000		Extraordinary Items	-
Deferred Long Term Liability Charges	-	-		Effect Of Accounting Changes	-
Minority Interest	-	-		Other Items	-
Negative Goodwill	-	-		Net Income
Total Liabilities	43,075,000	38,633,000		Net Income	8,630,000
Stockholders' Equity				Preferred Stock And Other Adjustments	-
Misc. Stocks Options Warrants	-	-		Net Income Applicable To Common Shares	8,630,000
Redeemable Preferred Stock	-	-
Preferred Stock	-	-
Common Stock	89,000	88,000	Q1	Operating profit margin	14.55%
Retained Earnings	39,935,000	35,519,000		Asset Turnover	2.31
Treasury Stock	-48,762,000	-41,061,000	Q2	ROA	0.336
Capital Surplus	10,192,000	9,787,000
Other Stockholder Equity	-566,000	-867,000
Total Stockholder Equity	1,454,000	4,333,000
Net Tangible Assets	-1,384,000	2,240,000