1, Describe whether you want a high value or a low value for each ratio, independent of the other ratios.

Return on equity:

Profit margin ratio:

Asset turnover ratio:

Financial leverage ratio:

2, The profit margin ratio is the only ratio that makes up ROE that can be negative (except in relatively rare cases). Describe how the interpretation of the Asset Turnover Ratio and the Financial Leverage Ratio change based on whether the Profit Margin Ratio is positive or negative.