5. Profitabllity ratios Profitateity ratios help in the enalysia of the combined impact of lquidity ratios, asset management ratios, and debt management ratios on the operating performance of a firm. Your boss has asked you to calculate the profitablity ratios of Dissitech inc and make comments on its second-year performance as compared with its flrstyear performance. The following shows Disizech Ine.'s income statement for the iast two years. The company had assets of $5,875 millon in the fint year and 59,398 millien in the secand year. Common equity was equal to $3,125 minion in the first year, and the company distnbuted iocon of ins eamings out as dividends during the first and the second years. In addition, the firm did not issue new stock duting elter year, Diusitech Inc. Income Statement For the Year Ending on December 31 (Millions of dollars) Calculate the profitability ratios of Diusitech Inc. In the following table. Convert all calculations to a percentage rounded to two docimal places. Decision makers and analysts look deeply into profitatilicy ratios to identify trends in a companyim profisabiity. Profigabify ratios give insighta into both the survivability of a company and the benefiss that sharaholders receive Identify which of the following ataternents are true about iruftabiefy matios. Check ail that apply. A Righer operating margin than the industry arverage indicates rither lower cperating casta, bigher product pricing, or both. If a company's operating margin incroases but its profit margin decreases, it coufd mean that the company paid mort in interkit ar tures. An increase in a compary's earrings means that the orofit margit is increasing