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The following shows St. McStanky Beer Co.'s income statement for the last two years. The company had assets of $9,400 million in the first year
The following shows St. McStanky Beer Co.'s income statement for the last two years. The company had assets of $9,400 million in the first year and $15,037 million in the second year. Common equity was equal to $5,000 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 St. McStanky Beer Co Income Statement For the Year Ending on December 31 (Millions of dollars) Year 2 Year 1 5,080 4,000 1,855 1,723 160 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 254 2,109 1,88 2,971 2,117 401 2,570 1,895 1,028 1,542 1,137 758 Calculate the profitability ratios of St. McStanky Beer Co. in the following table. Convert all calculations to a percentage rounded to two decimal places. Ratio Value Year 2 Year 1 Operating margin Net profit margin Return on total assets Return on equity Basic earning power 52.93% 30.35% 12.10% 22.74% 19.76% Decision makers and analysts look deeply into profitability ratios to identify trends in a company's profitability ts into hoth the survivahilitw of a comoa
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