SIGNET BLUE NILE TIFFANY 2013 2014 2015 2016 2013 2014 2015 2014 2015 2016 Dupont Decomposition X Net Income/Revenues Revenues/avg. Assets Net Income Margin 8.7% 6.6% 7.1% 8.5% 2.4% 2.0% 2.2% 11.4% 11.3% 11.1% Asset Turnover 1.09x 1.12x 1.03x 0.98x 2.79x 2.83x 3.05x 0.86x 0.80x 0.78x = ROA (Net Income / avg. Assets) ROA 9.5% 7.4% 7.4% 8.3% 6.8% 5.8% 6.7% 9.3% 9.1% 8.8% X Assets/avg. Equity Leverage 1.58x 1.91x 2.16x 2.12x 5.90x 6.15x 9.77x 1.78x 1.78x 1.72x = Net Income/avg. Equity ROE 15.0% 14.2% 15.9% 17.6% 39.9% 35.7% 65.2% 17.3% 16.1% 15.0% Gross Profit/ Revenues Operating Profit / Revenues Gross Margin Operating Margin 37.5% 36.2% 37.3% 36.8% 18.6% 18.3% 19.2% 59.7% 60.7% 62.2% 13.6% 10.1% 10.7% 11.9% 3.2% 3.0% 3.4% 21.0% 18.5% 18.0% EBT / Revenues 13.5% 9.4% 10.0% 11.1% 3.2% 3.1% 3.4% 19.6% 17.3% 17.5% 365/(Revenues/avg. AR) Avg. Days Sales Out. 120 100 99 111 2 1 2 13 14 16 365/(COGS/avg. Inventory) Avg. Days Inventory Out. 200 196 217 221 34 36 41 500 519 529 365/((COGS+ Ch. Inventory)/ avg. AP) Avg. Days Payable Out. 21 17 24 24 118 116 117 24 30 30 Avg. Cash Conversion Cycle 299 279 292 308 -83 -79 -73 488 503 515 Growth over prior year Revenues 5.7% 36.3% 14.2% -2.2% 12.5% 5.2% 1.4% 5.4% -3.4% -2.5% Gross Profit 2.8% 31.2% 17.7% -3.3% 11.6% 3.5% 6.6% 8.4% -1.8% 0.0% Operating Profit 1.8% 1.1% 22.0% 8.5% 16.3% -0.7% 13.4% 13.6% -14.7% -5.1% EBT Excl. Unusual Items 1.7% -4.6% 21.7% 8.5% 12.3% 0.0% 10.3% 13.1% -14.6% -1.1% Net Income 2.3% 3.6% 22.7% 16.1% 29.8% -11.0% 8.2% 166.9% -4.2% -3.8%