1. Desert Sands Mining and Ocean Wave Shipping reported the following for 2023:

Desert Sands Mining:

• Revenue: $180 million
• COGS: $108 million
• Operating Expenses: $75 million
• Net Income: -$3 million
• Total Assets: $200 million
• Total Liabilities: $95 million

Ocean Wave Shipping:

• Revenue: $175 million
• COGS: $105 million
• Operating Expenses: $78 million
• Net Income: -$3 million
• Total Assets: $195 million
• Total Liabilities: $100 million

Compare the gross profit margins of both companies. Calculate the operating profit margins. Determine which company has a better debt-to-equity ratio.