TJ Inc. and Mall Inc. operate in the same industry.

Use the financials below to compare the two firmsFocus on the three levers of performance that affect return on equity (ROE), comparing and contrasting these three DuPont components of ROE.

Do you think the difference between these firms can be attributed to weak management in one of the firms; or could it be that the two simply have different competitive strategies? Explain briefly.

TJ Inc InS000's Mall Inc InS000's 59,490,000 39,399,000 20,091,000 348,650,000 264,152,000 84,498,000 COGS COGS Gross Profit Gross Profit 15022000 Operating Ep Operating Profits 5,069,000 Operating Ep 54001000 Operating Profits20,497000 Interest Expense EBT 597,000 4,472,000 Interest Expense EBT 1,809,000 18,688,000 1,710,000 2,762,000 6,365,000 Net Income Net Income 12,323,000 Assets Cash A/R 813,000 6,194,000 6,254000 13,261,000 7,373,000 2,840,000 33,685,000 Cash A/R Current Assets Current Assets Prop, Plant & Equip 21,431,000 Prop, Plant & Equip 88,440,000 Total Assets Liabilities & Equity A/P ST Portion ofLTD Current Liabilities 9,755,000 1,362,000 11,117,000 Liabilities & Equity A/P ST Portion ofLTD Current Liabilities 43,471,000 8,283,000 51,754000 LT Debt Total Liabilities 10,599,000 21,716,000 LT Debt Total Liabilities 30,735,000 82,489,000 Total Equity 12,976,000 Total Equity 49,849,000