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.