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Casa Comfort is a leading retailer in the home improvement industry. Certain data from its financial statements for the years ended 31 March 2004 and 31 March 2005 follow (euro in millions):
2005
2004
Sales
38,434
30,219
EBIT
3,795
2,661
EAT
2,320
1,614
PPE, net
10,227
8,160
TA
17,081
13,465
Equity
12,341
8,740
(a) Compute ROTA for the years ended 31 March 2004 and 31 March 2005.
(b) Compute the margin on sales and total asset turnover. Show how these two ratios determine the ROTA.
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