All of which have caused an increase in sales and in net income for the company. This is more than likely due to an increase in the number of total assets. Since the company has been expanding, they have had to invest in more inventory and more property for their new stores. This concurs with the ROE Decomposition in that it shows that a company can have a high profit margin and know how to control costs. Also, even though the TAT has decreased the current ratio still proves that the company has nothing to worry about in that aspect because it seems to have no problem generating sales from those assets.
High liquidity can often be a problem.
That is if the company just sits on the cash and does not re-invest it, it would be cause to worry. However, Tiffany's has future plans not only to continue the current expansion, but to also purchase or at least invest in a Canadian diamond mine. Therefore, investors need have no worries on this point. This is also shown through the increase in Sales and in Net Income. Next, they show a gradual increase in both Current Assets and Long Term Assets, as well as a slighter increase in Current Liabilities and Long Term Liabilities.