Financial Statement Analysis for Return on Equity (ROE): A company reported net income of $150,000 and shareholders' equity of $500,000. Calculate the company's return on equity (ROE) and discuss how this profitability ratio reflects the company's ability to generate profits from shareholders' investments. Analyze factors that may influence ROE, such as financial leverage, asset turnover, and profit margin, and their implications for financial performance and strategic decision-making.