Analyze and compare Amazon.com and Wal-Mart Amazon.com, Inc. (AMZN) is one of the largest internet retailers in the world. Wal-Mart Stores, Inc. (WMT) is the largest retailer in the United States. Amazon and Wal-Mart compete in similar markets; however, Wal-Mart sells through both traditional retail stores and the internet, while Amazon sells only through the internet. Interest expense and income before income tax expense from the financial statements of both companies for two recent years follow (in millions): Amazon Walmart Year 2 Year 1 Year 2 Year 1 Interest expense $484 $459 $2,548 $2,461 Income (loss) before income tax expense 3,892 1,568 21,638 24,799 a. Compute the times interest earned ratio for both companies for the two years. Round your answers to one decimal place. Amazon Walmart Year 2 Year 1 Year 2 Year 1 Times Interest Earned Ratio
Analyze and compare Amazon.com and Wal-Mart Amazon.com, Inc. (AMZN) is one of the largest internet retailers in the world. Wal-Mart Stores, Inc. (WMT) is the largest retailer in the United States. Amazon and Wal-Mart compete in similar markets; however, Wal-Mart sells through both traditional retail stores and the internet, while Amazon sells only through the internet. Interest expense and income before income tax expense from the financial statements of both companies for two recent years follow (in millions): Amazon Walmart Year 2 Year 1 Year 2 Year 1 Interest expense $484 $459 $2,548 $2,461 Income (loss) before income tax expense 3,892 1,568 21,638 24,799 a. Compute the times interest earned ratio for both companies for the two years. Round your answers to one decimal place. Amazon Walmart Year 2 Year 1 Year 2 Year 1 Times Interest Earned Ratio
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Analyze and compare Amazon.com and Wal-Mart
Amazon.com, Inc. (AMZN) is one of the largest internet retailers in the world. Wal-Mart Stores, Inc. (WMT) is the largest retailer in the United States. Amazon and Wal-Mart compete in similar markets; however, Wal-Mart sells through both traditional retail stores and the internet, while Amazon sells only through the internet. Interest expense and income before income tax expense from the financial statements of both companies for two recent years follow (in millions):
| Amazon | Walmart | |||||||
| Year 2 | Year 1 | Year 2 | Year 1 | |||||
| Interest expense | $484 | $459 | $2,548 | $2,461 | ||||
| Income (loss) before income tax expense | 3,892 | 1,568 | 21,638 | 24,799 |
a. Compute the times interest earned ratio for both companies for the two years. Round your answers to one decimal place.
| Amazon | Walmart | |||||||
| Year 2 | Year 1 | Year 2 | Year 1 | |||||
| Times Interest Earned Ratio |
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