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help on all parts please Profitability ratios help in the analysis of the combined Impact of liquidity ratios, asset management ratios, and debt management ratios

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Profitability ratios help in the analysis of the combined Impact of liquidity ratios, asset management ratios, and debt management ratios on the operating performance of a firm, Your boss has asked you to calculate the profitability ratios of Blue Sky Drone Company and make comments on its second-year performance as compared to its first-year performance. The following shows Blue Sky Drone's Income statement for the last two years. The company had assets of $11,750 million in the first year and $18,796.00 million in the second year. Common equity was equal to $6,250 million in the first year, and the company distributed 100% of its earnings out as dividends during the first and the second years. In addition, the firm did not issue new stock during elther year. Blue Sky Drone Company Income Statement For the Year Ending on December 31 (Millions of dollars) Year 2 Year 1 Net Sales 6,350 5,000 Operating costs except depreciation and amortization 1,120 1,040 Depreciation and amortization 318 200 Total Operating costs 1,438 1,240 Operating Income (or EBIT) 4,912 3,760 Less Interest 663 395 Earnings before taxes (EBT) 4,249 3,365 Less: Taxes (40%) 1,700 1,346 Net Income 2,549 2,019 Calculate the profitability ratios or Blue Sky Drone Company in the following table. Convert al calculations to a percentage rounded to two decimal places. Ratio Value Year 2 Year 1 75.20% 40.14% Operating profit margin Net profit margin Return on total assets Return on common equity Basic earning power 17.18% 32.30% 26.13% Decision makers and analysts took deeply into profitability ratios to identify trends in a company's profitability. Profitability ratlos. 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. A higher operating profit margin than the industry average indicates either lower operating costs, higher product pricing, or both. 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 net profit margin is increasing. If a company issues new common shares but its net income does not increase, return on common equity will increase

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