·Scenario 3: Financial Ratios

DEF Inc. has provided the following information for the year ended December 31, 2023:

• Total Assets: $1,500,000
• Total Liabilities: $600,000
• Net Income: $300,000
• Total Revenue: $1,200,000
• Total Expenses: $900,000
• Average Shareholders' Equity: $400,000

Calculate the following financial ratios for DEF Inc.:

a) Return on Assets (ROA) b) Return on Equity (ROE) c) Debt-to-Equity Ratio d) Gross Profit Margin e) Net Profit Margin

Interpret each ratio and discuss the financial performance of DEF Inc. based on these ratios.