Given the financial data of Company ABC, calculate various financial ratios and interpret their implications for stakeholders.
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Question:
Given the financial data of Company ABC, calculate various financial ratios and interpret their implications for stakeholders. The provided data includes:
- Net Income: $500,000
- Total Assets: $2,000,000
- Total Liabilities: $800,000
- Shareholders' Equity: $1,200,000
- Revenue: $1,000,000
- Operating Expenses: $400,000
Calculate the following ratios:
- Return on Assets (ROA)
- Return on Equity (ROE)
- Debt-to-Equity Ratio
- Gross Profit Margin
- Net Profit Margin
Provide an analysis of these ratios and their significance for assessing Company ABC's financial performance and health.
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