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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 Stay Swift Corp. and make comments on its second-year performance as compared to its first-year performance The following shows Stay Swift Corp.'s income statement for the last two years. The company had assets of $7,050 million in the first year and $11,278 million in the second year. Common equity was equal to $3,750 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 either year Stay Swift Corp Income Statement For the Year Ending on December 31 (Millions of dollars) Year 2 3,810 1,365 191 1,556 2,254 304 1,950 780 1,170 Year 1 3,000 1,268 120 1,388 1,612 210 1,402 561 841 Net Sales Operating costs except depreciation and amortization Depreciation and amortization Total Operating Costs Operating Income (or EBIT) Less: Interest Earnings before taxes (EBT) Less: Taxes (40%) Net Income