Calculate the profitability ratios of Spandust Industries Inc. in the following table. Convert all calculations to a percentage rounded to two decimal places. Ratio Operating margin Profit margin Return on total assets Return on common equity Basic earning power Value Year 2 38.74% 20.17% Year 1 54.40% 15.97% 30.02% Decision makers and analysts look deeply into profitability ratios to identify trends in a company's profitability. Profitability ratios give insights into both the survivability of a company and the benefits that shareholders receive. Identify which of the following statements are true about profitability ratios. Check all that apply. If a company has a profit margin of 10%, it means that the company earned a net income of $0.10 for each dollar of sales. If a company's operating margin increases but its profit margin decreases, it could mean that the company paid more in interest or taxes. An increase in a company's earnings means that the profit margin is increasing. If a company issues new common shares but its net income does not increase, return on common equity will increase.

Palculate the profitabiaty ratios of Spandust Industries Inc. in the following table. Convert all calculations to a percentage rounded to two decima! blaces. Dection maken and analyses look deeply into profitability ratios to identify trends in a campany's profitabihity. Profitability ratios give insights into beth the survivabuity of a compary and the benefits that shareholders receive. Identify which of the foliowing statements are true about profitability natiot check all thet opon. If a company has a profit raegin of 10%, it means that the company eamed a net income of so, 10 for each dollar of salet. Rones An increase in a companys eamings mans that the profit margin is increating. Palculate the profitabiaty ratios of Spandust Industries Inc. in the following table. Convert all calculations to a percentage rounded to two decima! blaces. Dection maken and analyses look deeply into profitability ratios to identify trends in a campany's profitabihity. Profitability ratios give insights into beth the survivabuity of a compary and the benefits that shareholders receive. Identify which of the foliowing statements are true about profitability natiot check all thet opon. If a company has a profit raegin of 10%, it means that the company eamed a net income of so, 10 for each dollar of salet. Rones An increase in a companys eamings mans that the profit margin is increating