Compare gross pro?t and net income as a percentage of sales

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Question: Comparing Financial Information Across Industries. Use the data and computations required in parts a and b of to compare TJX Companies and Apple Inc.

a. Compare gross pro?t and net income as a percentage of sales for these two companies. How might differences in their respective business models explain the differences observed?

b. Compare sales versus total assets. What do observed differences indicate about the relative capital intensity of these two industries?

c. Which company has the higher percentage of total liabilities to stockholders' equity? What do these ratios imply about the relative riskiness of these two companies?

d. Compare the ratio of net income to stockholders' equity for these two companies. Which business model appears to yield higher returns on stockholder investment? Using answers to parts a through c above, identify the actors that appear to drive the ratio of net income to stockholders' equity.

Reference no: EM131815683

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