Decision makers and analysts look deeply into profitability ratios to identify trends in a companys 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 companys operating margin increases but its profit margin decreases, it could mean that the company paid more in interest or taxes.

- An increase in the return on assets ratio implies an increase in the assets a firm owns.

- If a company issues new common shares but its net income does not increase, return on common equity will increase.