Analyze the financial statements of WaterWorks for the years ended December 31, 2023, 2022, and 2021, and address the following:

WaterWorks Comparative Income Statements for Years Ended December 31, 2023, 2022, and 2021:

• Sales: 2023: $5,500,000, 2022: $5,000,000, 2021: $4,500,000
• Cost of Goods Sold: 2023: $2,500,000, 2022: $2,300,000, 2021: $2,000,000
• Gross Profit: 2023: $3,000,000, 2022: $2,700,000, 2021: $2,500,000
• Operating Expenses: 2023: $1,200,000, 2022: $1,100,000, 2021: $1,000,000
• Net Income: 2023: $1,200,000, 2022: $1,100,000, 2021: $1,000,000

WaterWorks Comparative Balance Sheets as of December 31, 3, 2022, and 2021:

• Total Assets: 2023: $6,500,000, 2022: $6,000,000, 2021: $5,500,000
• Total Liabilities: 2023: $2,800,000, 2022: $2,600,000, 2021: $2,400,000
• Shareholders' Equity: 2023: $3,700,000, 2022: $3,400,000, 2021: $3,100,000

Requirements:

1. Calculate the gross profit margin for each year.
2. Determine the net profit margin for each year.
3. Compute the return on assets (ROA) for each year.
4. Calculate the debt-to-equity ratio for each year.
5. Discuss the financial health of the company based on these metrics.