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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

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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 Diusitech Inc. and make comments on its second-year performance as compared with its first-year performance. The following shows Diusitech incis income statement for the last two years. The company had assets of $9,400 million in the first year and 515,037 milion in the second year. Common equity was equal to $5,000 million in the first year, and the company distributed ioa\% of its earnings out as dividends during the first and the second years. In addition, the fimm did not issue new stock during either year. Diusitech Inc. Income Statement For the Year Ending on December 31 (Mulilons of doliars) Calculate the profitability ratios of Diusitech Inc. in the following table. Convert all calculations to a percentage rounded to two decimal places. Decision makers and analysts look deeply into profitability ratios to identify trends in a company's profitability. Profitability ratios glve insights into both the survivability of a company and the benefits that shareholders recelve. Identify which of the following statements are true about prontability ratios. Check all that apply

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