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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 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 $11,750 million in the first year and $18,796 million in the second year. Common equity was equal to $6,250 million in the first year, and the company distributed 100% of its earnings out as dividends during the first and the second years. In duddition, the firm did not issue new stock during either year. Stay Swit Corp. Income Statement For the Year Ending on December 31 (Millons of dollars) Calculate the profitability ratios of Stay Swift Corp. In the following table. Convert all calculations to a percentage rounded to two decimal places

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