Attempts: S Keep the Highest: 5/9 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 Gadget Twin Inc. and make comments on its second-year performance as compared to its frst-year performance. The folowing shows Gadget Twin Inc.'s income statement for the last two years. The company had assets of $11,750 illin n the fist year and $18,796 illon i 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 ye In addition, the firm did not issue new stock during etther year. ars. Gadget Twin Inc. Income Statement For the Year Ending on December 31 (Millions of dollars) Year 2 Year 1