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 Operating margin Profit margin Value Year 2 45.98% Year 1 64.30%

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Chapter1: Financial Statements And Business Decisions
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St. McStanky Beer Co. Income Statement For the Year Ending on December 31 (Millions of dollars)
Year 2 Year 1
5,080
4,000
1,365
1,268
254
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 (25%)
Net Income
Ratio
Operating margin
Profit margin
Return on total assets
Return on common equity
Basic earning power
Value
Year 2
Calculate the profitability ratios of St. McStanky Beer Co. in the following table. Convert all calculations to a percentage rounded to two decimal
places.
45.98%
23.02%
Year 1
64.30%
1,619
3,461
346
17.85%
33.56%
3,115
779
2,336
1,428
2,572
334
2,238
560
1,678
Transcribed Image Text:St. McStanky Beer Co. Income Statement For the Year Ending on December 31 (Millions of dollars) Year 2 Year 1 5,080 4,000 1,365 1,268 254 160 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 (25%) Net Income Ratio Operating margin Profit margin Return on total assets Return on common equity Basic earning power Value Year 2 Calculate the profitability ratios of St. McStanky Beer Co. in the following table. Convert all calculations to a percentage rounded to two decimal places. 45.98% 23.02% Year 1 64.30% 1,619 3,461 346 17.85% 33.56% 3,115 779 2,336 1,428 2,572 334 2,238 560 1,678
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