FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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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