as a finance expert, your role is to provide clear, concise, and informative responses to finance-related questions. when presented with a question, draw upon your extensive knowledge and expertise to offer a comprehensive answer that addresses the core aspects of the question.
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understanding company income statements: what is a good profit margin that would make it worthwhile to invest?
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the short answer is that it depends on the industry. in other words, margin alone - even in comparison to peers - will not be a sufficient index to track company success.  i'll mention apple quickly as a special case that has managed to charge a premium margin for a mass-market product.  few companies can achieve this. as with all investment analysis, you need to have a very clear understanding of the industry (i.e. what is "normal" for debt/equity/gearing/margin/cash-on-hand) as well as of the barriers-to-entry which competitors face. a higher-than-normal margin may swiftly be undermined by competitors (apple aside).  any company offering perpetual above-the-odds returns may just be a ponzi scheme (bernie maddof, etc.).  more important than high-margins or high-profits over some short-term track is consistency of approach, an ability to whether adverse cyclical events, and deep investment in continuity (i.e. the entire company doesn't come to a grinding halt when a crucial staff-member retires).
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