7. Profitability Ratios For the year ended 20YO, total assets were 8,445,000 and common stockholders' equity was 5,325,000. Profit margin ratio = Net income / Net sales Year 20Y2 20Y1 Numerator Denominator Net profit margin (%) Competitor: 3.6% Industry Average: 4.9% Year Return on total assets (ROA) = (Net income + Interest expense) / Average total assets Numerator Denominator 20Y2 20Y1 Year 20Y2 20Y1 Marke The mark ROA (%) 159Y YOS Competitor: 6.4% Industry Average: 10.3% Return on common stockholders' equity (ROE) = (Net income - Preferred dividends) / Average common stockholders' equity Numerator Denominator ROE (%) Competitor: 13.0% Industry Average: 17.7% Profitability Evaluation: Should any of these ratios or the change in a ratio warrant concern for the managers of Stargel or the shareholders?