Comparing Investment Performance Information is provided below for Tommy Hilfiger Corporation and Nike, Inc.
|
Hilfiger |
Nike |
|||
|
(In millions) |
2002 |
2001 |
2002 |
2001 |
|
Total assets |
$2,594 |
$2,343 |
$6,443 |
$5,820 |
|
Total liabilities |
1,097 |
994 |
2,604 |
2,325 |
|
Revenues |
1,877 |
1,881 |
9,893 |
9,489 |
|
Operating income |
186 |
197 |
1,068 |
1,014 |
|
Net income |
135 |
131 |
663 |
590 |
|
Depreciation and amortization |
114 |
107 |
277 |
214 |
|
Cash from operations |
353 |
191 |
1,082 |
657 |
|
Cash from investing |
302 |
74 |
303 |
342 |
|
Cash from financing |
18 |
108 |
478 |
350 |
|
Additions to plant assets |
97 |
74 |
283 |
318 |
Required
A. Compute the asset turnover, profit margin, and return on assets for each year and company.
B. Compare the effectiveness and efficiency of the two companies.
C. Compare the investing activities of the two companies over the two years and discuss your findings.