year 2 operating margin choices: 28.03% 23.36% 9.03% or 29.67%

year 1 net profit margin choices: 8.55% 6.33% 16.00% or 4.99%

year 2 return on total assets choices: 4.26% 6.81% 1.68% or 4.90%

year 2 return on common equity choices: 9.60% 15.74% 12.80% or 11.39%

year 1 basic earning power choices: 3.66% 12.62% 4.88% or 3.05%

can you show work for calculations

Profitability ratios help in the analysis of the combined impact of liquidity ratlos, asset management ratios, and debt management ratios on the operating performance of a firm. Your boss has asked you to calculate the profitability ratlos or Stay Swift Corp. and make comments on its second-year performance as compared to its first-year performance The following shows Stay Swift Corp's income statement for the last two years. The company had assets of $3,525 million in the rest year and $5,699 million in the second year. Common equity was equal to $1,875 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 1,905 1,500 Operating costs except depreciation and amortization 1,365 1,268 Depreciation and amortization 95 60 Total Operating costs 1,460 1,328 Operating Income (or EBIT) 445 172 Less: Interest 45 14 Earnings before taxes (EBT) 400 158 160 63 Less: Taxes (40%) 240 95 Net Income w rounded to two decimal places Calculate the profitability ratios of Stay Swift Corp. In the following table. Convert all calculations to a percentage rounded to two decimal places Value Year 2 Year 1 11.47% 12.60% Ratio Operating margin Net profit margin Return on total assets Return on common equity Basic earning power 2.70% 5.07% 7.89% Decision makers and analysts look deeply into profitability ratios to identify trends in a company's profitability Profitability ration give insights into both the survivability of a company and the benefits that shareholders receive. Identity which of the following statements are true about profitability ratios. Check all that apply Ott a company has a net profit margin of 10%, it means that the company earned a net income of $0.10 for each daltar at sales 1r a company's operating margin Increases but its profit margin decreases, it could mean that the company paid more in interest or taves, An increase in a company's eamings means that the net profit margin is increasing If a company issues new common shares but its net income does not increase, return on common equity will increase