For the fiscal year 2022, the income statements for Google LLC and Facebook, Inc. are provided:

($ millions)	Google LLC	Facebook, Inc.
Net sales	$257,637	$117,927
Cost of sales	125,674	45,372
Gross profit	131,963	72,555
Operating expenses:
Selling, general, and administrative (SG&A)	70,831	29,184
Research and development (R&D)	26,982	21,605
Operating income	34,150	21,766
Interest and other (income) expense	4,305	1,804
Interest and investment income	(1,606)	(792)
Earnings before provision for income taxes	31,451	20,754
Provision for income taxes	9,435	5,188
Net earnings	$22,016	$15,566

Required:

1. Calculate 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 28%.
2. Disaggregate the ROA into profit margin (PM) and asset turnover (AT) components. Identify which factor drives the ROA for each company.
3. Analyze the trend in SG&A expenses over the past five years. How does it affect each company’s operational efficiency?
4. Evaluate the current ratio and quick ratio for Google LLC and Facebook, Inc. What does it reveal about their short-term liquidity?
5. Compare the operating profit margins of Google LLC and Facebook, Inc. What insights can be drawn about their cost control and profitability?