Question for accountants???

Question

How do I determine when Profit margin, asset turnover, return on assets, debt to equity ratio, and return to equity is good or bad.

Answer 1

Profit margin = high is good (more income than expenses).

Asset turnover = high is good (AR collections are not hanging out there for long periods of time).

ROA = high is good (company is using the asset $'s to generate income $s).

DTE = low is good (company is using its retained earinings to fund growth instead of additional debt)

ROE = high is good (company is using shareholder investments to generate income)