Tiffany & Co. (TIF) designs and sells jewelry including rings, watches, and necklaces throughout the world. The following data (in millions) were taken from recent financial statements of Tiffany:
Net income .................................................................... $ 891
Total assets at the beginning of the year .................................. 4,752
Total assets at the end of the year ......................................... 5,181
1. Compute the return on assets for Tiffany using the preceding data. Round to one decimal place.
2. Using your answers to MBA 1-6, compare the return on assets for Wal-Mart to that of Tiffany.