< Back to Assignment Attempts: Keep the Highest: / 0.5 5. Profitability ratios Profitability ratios help in the analysis of the combined impact of liquidity ratios, asset management ratios, and debt management ratios on the operating performance of a firm. Your boss has asked you to calculate the profitability ratios of Stay Swift Corp. and make comments on its second-year performance as compared with its first-year performance. The following shows Stay Swift Corp.'s income statement for the last two years. The company had assets of $10,575 million in the first year and $16,916 million in the second year. Common equity was equal to $5,625 million in the first year, and the company distributed 100% of its earnings out as dividends during the first and the second years. In addition, the firm did not issue new stock during either year. Stay Swift Corp. Income Statement For the Year Ending on December 31 (Millions of dollars) Year 2 Year 1 Net Sales 5,715 4,500 Operating costs except depreciation and amortization 1,855 1,723 Depreciation and amortization 286 180 Total Operating Costs 2,141 1,903 Operating Income (or EBIT) 3,574 2,597 Less: Interest 357 208 Earnings before taxes (EBT) 3,217 2,389 Less: Taxes (25%) Net Income 804 597 2,413 1,792 Calculate the profitability ratios of Stay Swift Corp. in the following table. Convert all calculations to a percentage rounded to two decimal places. Ratio Value