Consider the financial data for Intel Corporation and Advanced Micro Devices, Inc. (AMD) for the fiscal year 2022:

($ millions)	Intel Corporation	Advanced Micro Devices, Inc.
Net sales	$79,024	$22,804
Cost of sales	32,509	10,045
Gross profit	46,515	12,759
Operating expenses:
Selling, general, and administrative (SG&A)	18,672	4,509
Research and development (R&D)	13,511	3,271
Operating income	14,332	4,979
Interest and other (income) expense	1,375	872
Interest and investment income	(512)	(278)
Earnings before provision for income taxes	13,469	4,385
Provision for income taxes	3,367	1,094
Net earnings	$10,102	$3,291

Required:

1. Compute the return on equity (ROE), return on assets (ROA), and return on financial leverage (ROFL) for each company in fiscal year 2022. Assume a tax rate of 27%.
2. Disaggregate the ROA into profit margin (PM) and asset turnover (AT) components. Identify which factor drives the ROA for each company.
3. Assess the trend in operating income over the past five years. How does it impact each company’s ability to invest in new technologies?
4. Evaluate the debt-to-equity ratio for Intel Corporation and Advanced Micro Devices, Inc. What does it suggest about their financial leverage?
5. Compare the net profit margins of Intel Corporation and Advanced Micro Devices, Inc. What insights can be drawn about their cost management and profitability?