Income statements for Amazon.com Inc. and Alibaba Group for the fiscal year 2022 are as follows:

($ millions)	Amazon.com Inc.	Alibaba Group
Net sales	$469,822	$109,480
Cost of sales	282,752	60,214
Gross profit	187,070	49,266
Operating expenses:
Selling, general, and administrative (SG&A)	142,132	26,184
Depreciation and amortization	18,467	4,235
Operating income	26,471	18,847
Interest and other (income) expense	2,437	1,389
Interest and investment income	(905)	(420)
Earnings before provision for income taxes	24,939	17,878
Provision for income taxes	6,225	4,254
Net earnings	$18,714	$13,624

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 three years. How does it impact each company’s financial health?
4. Evaluate the debt-to-equity ratio for Amazon.com Inc. and Alibaba Group. What does it suggest about their financial leverage?
5. Compare the interest coverage ratios for Amazon.com Inc. and Alibaba Group. What insights can be drawn about their ability to meet interest obligations?