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 Triptych Food Corp. and make comments on its secondyear performance as compared
with its firstyear performance.
The following shows Triptych Food Corp.s income statement for the last two years. The company had assets of $ million in the first year and
$ million in the second year. Common equity was equal to $ million in the first year, and the company distributed 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.
Triptych Food Corp. Income Statement For the Year Ending on December Millions of dollars
Calculate the profitability ratios of Triptych Food Corp. in the following table. Convert all calculations to a percentage rounded to two decimal places.
