The normal engine compression is 175 psi for a healthy engine. Any thing more than that indiactes that the residues are forming up in combistion chambers which will in future detoriate the piston rings.
200psi compression is fine unless there is no smoke present with it.
Only assesing the engine on the basis of compression can easily misguide the whole diagnostic procedure so compression along with smoke test is nessacary to better understand whats going on inside the engine.
So thumb rule for new engine is
1: perform compresion any thing beyond 175psi indiactes carbon build up in cc which can lead to octane knock that ends in engine piston rong failure.
2: if compression is fine you must perform smoke test because compression can easily misguide so smoke test reveal the actual situation.
3: high compression along with smoke indiactes that bore has detoriated and if knock is also found along woth it. Its rod knock or piston slap commonly occurs in detoriated 1KR-FE and 2SZ-FE.