Evaluate net profit margin and total asset turnover

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Reference no: EM133515

Question :

With this case, a comparison is made in between three firms in dissimilar industries using net profit margin, total asset turnover and current ratio.

Net Profit Margin Total Asset Turnover Current Ratio

Firm A 1.67% 3.40 times 1.16

Firm B 21.48% 1.06 times 2.01

Firm C 4.44% 1.49 times 1.71

Apple

Fiscal year 2010 ended 25^th September, 2010, and consisted of 52 weeks "Apple, Inc. and its completely owned subsidiaries (collectively "Apple" or the "Company") designs, manufactures and markets a range of personal computers, media devices and mobile communication, and portable digital music players, and sells a range of related software, services, peripherals, third-party digital content and networking solutions and applications."

2. Costco Wholesale Corporation

Fiscal year ended 29^th August, 2010, and consisted of 52 weeks "We operate membership warehouses based on the idea that offering our member's low prices on a limited selection of generally branded and selected private-label products in a wide range of merchandise categories will construct high sales volumes and rapid inventory turnover."

3. Target Corporation

Fiscal year 2010 ended 29^th January, 2011, and consisted of 52 weeks "Our Retail Segment adds all of our merchandising operations, adding our fully integrated online business. We provide everyday fashionable and essentials, differentiated merchandise at discounted prices."

Required

a. Which firm is Firm A? Comment on your reasons.

b. Which firm is Firm B? Comment on your reasons.

c. Which firm is Firm C? Comment on your reasons.

Reference no: EM133515

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