• ABC Inc. wants to analyze its profitability using various ratios. The financial data for the year is as follows:

  • Sales Revenue: $1,000,000
  • Cost of Goods Sold: $600,000
  • Gross Profit: $400,000
  • Operating Expenses: $200,000
  • Net Income: $150,000
  • Total Assets: $800,000
  • Total Equity: $400,000

• Calculate the following profitability ratios:

  • Gross Profit Margin
  • Operating Profit Margin
  • Net Profit Margin
  • Return on Assets (ROA)
  • Return on Equity (ROE)