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NK LULU Sales $37,403,000 $3,979,396 Earnings Available for Common Shareholders $2,539,000 $645,596 Total Assets $3,281,354 $31,342,000 $8,055,000 Total Equity $1,952,218 Using the DuPont analysis, calculate
NK LULU Sales $37,403,000 $3,979,396 Earnings Available for Common Shareholders $2,539,000 $645,596 Total Assets $3,281,354 $31,342,000 $8,055,000 Total Equity $1,952,218 Using the DuPont analysis, calculate the component ratios for ROA and ROE for Nike and Lululemon. What statement best describes the differences in ROA and ROE for Nike and Lululemon? LULU has a higher Net Profit Margin and lower Total Asset Turnover therefore its ROA is lower than NK. While NK's Financial Leverage Multiplier is smaller, LULU'S ROE is higher than NK. LULU has a lower Net Profit Margin and higher Total Asset Turnover therefore its ROA is lower than NK. While NK's Financial Leverage Multiplier is larger, LULU'S ROE is higher than NK. LULU has a higher Net Profit Margin and Total Asset Turnover therefore its ROA is higher than NK. While NK's Financial Leverage Multiplier is larger, LULU'S ROE is higher than NK LULU has a lower Net Profit Margin and Total Asset Turnover therefore its ROA is lower than NK. While NK's Financial Leverage Multiplier is smaller, LULU'S ROE is lower than NK
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