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Diusitech Inc. Income Statement For the Year Ending on December 31 (Millions of dollars) Year 2 Year 1 Net Sales 5,080 4,000 1,855 1,723 Operating
Diusitech Inc. Income Statement For the Year Ending on December 31 (Millions of dollars) Year 2 Year 1 Net Sales 5,080 4,000 1,855 1,723 Operating costs except depreciation and amortization Depreciation and amortization 254 160 2,109 1,883 Total Operating Costs Operating Income (or EBIT) 2,971 2,117 Less: Interest 297 222 2,674 1,895 Earnings before taxes (EBT) Less: Taxes (40%) 1,070 758 Net Income 1,604 1,137 Calculate the profitability ratios of Diusitech Inc. in the following table. Convert all calculations to a percentage rounded to two decimal places. Ratio Value Year 2 Year 1 Operating margin 52.92% Profit margin 31.57% Return on total assets 12.10% Return on common equity 22.74% Basic earning power 19.76%
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