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 with its first-year performance. The following shows Stay Swift Corp's income statement for the last two years. The company had assets of $5,875 million in the first year and $9,398 million in the second year. Common equity was equal to $3,125 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. 1,610 Stay Swift Corp. Income Statement For the Year Ending on December 31 (Millions of dollars) Year 2 Year 1 Net Sales 3,175 2,500 Operating costs except depreciation and amortization 1,495 Depreciation and amortization 159 100 Total Operating costs 1,595 Operating Income (or EBIT) Less: Interest 72 Earnings before taxes (EBT) 1,265 833 Less: Taxes (40%) 506 333 Net Income 759 500 1,769 1,406 905 141 Calculate the profitability ratios of Swift Corp. in the following table. Convert all calculations a percentage rounded to two decimal places, Ratio Value Year 2 Year 1 36.20% 44.28% 23.91% Operating margin Profit margin Return on total assets Return on common equity Basic earning power 8.5196 16.00% 14.96%