h 3 Homework 5. Profitability ratios Profitability ratios help assess a firm's ability to generate earnings as compared to the expenses and other costs incurred to support its earnings Assume that you have the following data for Companies A, B, and C in the same industry: Company C $25 Data Collected (in millions of dollars) Company A Company B Sales $14 $21 Operating costs 8 9 Net Income after taxes 3 5 Total assets 9 16 Stockholders' equity 5 7 12 6 21 8 Based on the information given, calculate the profitability ratios for these companies in the following table. Convert all calculations to a percentage and enter the values rounded to two decimals. Ratio Value Company A Company B Company C 52.00% 21.43% Gross profit margin Net profit margin Return on investment (total assets) Return on stockholders' equity 31.25% 60.00% Based on your understanding of profitability ratios, which of the following firms' shareholders earn the highest rate of return on their investment? Company A Coman Data Collected (in millions of dollars) Company A Company B Sales $14 $21 Operating costs 8 9 Company C $25 12 Net Income after taxes 3 5 6 Total assets 9 16 21 Stockholders' equity 5 7 8 Based on the information given, calculate the profitability ratios for these companies in the following table Convert all calculations to a percentage and enter the values rounded to two decimals. Ratio Value Company Company A Company C 52.00% 21.43% Gross profit margin Net profit margin Return on investment (total assets) Return on stockholders' equity 31.25% 60.00% Based on your understanding of profitability ratios, which of the following firms' shareholders earn the highest rate of return on their investment? Company A Company Company B Grade It Now Save a Continue Saye Continue without saving