1. Describe whether you want a high value or a low value for each ratio, independent of the other ratios.

- Return on equity:

- Profit margin ratio:

- Asset turnover ratio:

- Financial leverage ratio:

2.How can a company improve each ratio? how changes in either the numerator or denominator can improve the ratio. For each ratio, do you think it is better to focus on improving the numerator or denominator?

Ratio	How to improve ratio	focus on numerator or denominator (be specific)
ROE
Profit Margin
Asset Turnover
Finc. Leverage