Why has roe changed

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For the fiscal year ending January 31, 2012 (2011), Target had total revenues of (in millions) $69,865 ($67,390) and net earnings of $2,929 ($2,920). Its total assets were $46,630 ($43,705) and its equity was $15,821 ($15,487).

Question 1: Estimate Target's return on equity (ROE) for each of these two years, using the DuPont decomposition to indicate profit margin, the asset turnover, and the firms financial leverage.

Question 2: Why has ROE changed?

Question 3: How would you compare the ROE drivers for Walmart and Target?

Reference no: EM132467728

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