Consider the financial data for Tesla, Inc. and General Motors Company for the fiscal year 2022:

($ millions)	Tesla, Inc.	General Motors Company
Net sales	$92,423	$155,450
Cost of sales	60,731	124,675
Gross profit	31,692	30,775
Operating expenses:
Selling, general, and administrative (SG&A)	12,569	14,132
Research and development (R&D)	4,725	6,723
Operating income	14,398	9,920
Interest and other (income) expense	2,578	3,442
Interest and investment income	(890)	(1,030)
Earnings before provision for income taxes	12,710	7,508
Provision for income taxes	2,982	1,877
Net earnings	$9,728	$5,631

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 25%.
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 projects?
4. Evaluate the debt-to-equity ratio for Tesla, Inc. and General Motors Company. What does it suggest about their financial leverage?
5. Compare the operating profit margins of Tesla, Inc. and General Motors Company. What insights can be drawn about their cost control and profitability?