For the fiscal year 2022, the income statements for Walmart Inc. and Target Corporation are as follows:

($ millions)	Walmart Inc.	Target Corporation
Net sales	$572,754	$106,005
Cost of sales	433,891	74,223
Gross profit	138,863	31,782
Operating expenses:
Selling, general, and administrative (SG&A)	105,360	20,485
Depreciation and amortization	7,895	2,647
Operating income	25,608	8,650
Interest and other (income) expense	1,897	600
Interest and investment income	(415)	(154)
Earnings before provision for income taxes	24,126	8,204
Provision for income taxes	5,983	1,886
Net earnings	$18,143	$6,318

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 SG&A expenses over the past three years. What does this indicate about each company’s operational efficiency?
4. Evaluate the interest coverage ratio for both companies. What does it suggest about their ability to meet interest obligations?
5. Compare the net profit margins of Walmart Inc. and Target Corporation. What can be inferred about their profitability and cost management?