"We are a global specialty retailer offering apparel, accessories, and personal care products." 10-K Abercrombie & Fitch Limited Brands 2010 Date reviewed GAP 2010 2009 2009 2010 2009 Net profit margin Return on assets 4.33 2.70 8.37 5.19 8.21 7.76 5.21 8.08 2.78 7.07 11.82 43.98 16.00 14.17 Return on total equity 4.30 21.63 26.84 23.76 Required: a. Comment on the net profit margin for these companies. Consider absolute amounts and trend. b. Comment on the return on total equity or these companies. Consider absolute amounts and trend. c. Comment on the relative probability of these companies.

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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3. GAP, Inc.
(52 week fiscal year ended January 29, 2011, 52 week fiscal year ended
January 30, 2010)
"We are a global specialty retailer offering apparel, accessories, and personal
care products." 10-K
Date reviewed
Abercrombie & Fitch Limited Brands
GAP
2010
2009
2010
2009
2010 2009
Net profit margin
4.33
2.70
8.37
5.19
8.21
7.76
16,00 14.17
11.82
43.98
Return on assets
5.21
2.78
7.07
Return on total equity
8.08
4,30
21.63
26.84 23.76
Required:
a. Comment on the net profit margin for these companies. Consider
absolute amounts and trend.
b. Comment on the return on total equity or these companies. Consider
absolute amounts and trend.
c. Comment on the relative probability of these companies.
Transcribed Image Text:3. GAP, Inc. (52 week fiscal year ended January 29, 2011, 52 week fiscal year ended January 30, 2010) "We are a global specialty retailer offering apparel, accessories, and personal care products." 10-K Date reviewed Abercrombie & Fitch Limited Brands GAP 2010 2009 2010 2009 2010 2009 Net profit margin 4.33 2.70 8.37 5.19 8.21 7.76 16,00 14.17 11.82 43.98 Return on assets 5.21 2.78 7.07 Return on total equity 8.08 4,30 21.63 26.84 23.76 Required: a. Comment on the net profit margin for these companies. Consider absolute amounts and trend. b. Comment on the return on total equity or these companies. Consider absolute amounts and trend. c. Comment on the relative probability of these companies.
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