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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


  • 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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