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entify trends in Calculate the profitability ratios of Petroxy Oil Co. in the following table. Convert all calculations to a percentage rounded to two decimal places. Decision makers and anolysts look deeply into prontability ratios to identify trends in a company's profitability, Profitability ratios give insights into both the survivability of a company and the benefits that sharehoiders receive. Identify which of the following stotements are true about profitability ratios. Check all that opply. \begin{tabular}{l} Ratio \\ \cline { 2 - 3 } Operating margin \\ Net profit margin \\ Return on total assets \\ Return on common equity \\ Basic earning power \end{tabular} Decision makers and analysts look deeply into pro both the survivability of a company and the benef ratios. Check all that apply. A higher operating margin than the indu Petroxy OII Co. Income Statement For the Year Ending on December 31 (MIIIIons of dollars) Profitability ratios help in the anaiysis of the combined impact of liquidity rotios, asset manogernent ratios, and debt management ratios on the operating performance of a firm. Your boss has asked you to calculate the prontabaity ratios of Petroxy Ot Co. and make comments on its second-year performance as compored to its first-year performance. The following shows Petroxy Oit Co, 5 income statement for the last two years, The company had assets of $4,700 million in the first year and $7,518 million in the second year. Common equity was equal to $2,500 million in the first year, and the company distributed 100% of its earnings out as dividends during the first and the second years, in oddition, the firm did not issue new stock during either year. \begin{tabular}{lll} & \multicolumn{3}{c}{ Value } \\ \cline { 2 - 3 } Ratio & \multicolumn{3}{c}{ Year 2 } & Year 1 \\ \hline Operating margin \\ Net profit margin \\ Return on total assets \\ Return on common equity \\ Basic earning power \end{tabular} Decision makers and analysts look deeply into pro both the survivability of a company and the benef 7.16% tios to identify trends ratios. Check all that apply

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