It depends.

 

If the company is your local shoe store, absolutely.  If the company is Exxon Mobil Corporation, not so good.  Your instructor is probably trying to get you  to focus on something called the return-on-assets ratio, which will help you ask the question, “How much assets did it take to make that $1,000,000?”   Here’s the formula you use:  Net Income divided by Total Assets.  So if you used total assets of $10,000,000 to make $1,000,000 the performance wasn’t too shabby:  $1,000,000 divided by $10,000,000 equals .10 or 10%.  On the other hand, if a company used $1,000,000,000 in total assets to earn $1,000,000 how did they do?