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Profitability ratios help assets a firm's ability to generate earnings as compared to the expenses and other costs incurred to support its earnings, Assume that

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Profitability ratios help assets 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 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 21 8 Based on the information given, calculate the profitability ratios for these companies in the following table, Convert al calculations to a percentage and enter the values rounded to two decimals Ratio Value Company Company A Company C 52.00 Gross profit margin Net profit margin Return on investment (total assets) Return on stockholders equity 2143 31.25 60.00% Based on your understanding of profitability cation, which of the following mahiwahilders on the highest wear cetum on their meatment? O Company c Company A Company

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