Selected financial data for Lowes is provided below:
$$\begin{array} { l r }
\text { (\$ in millions) } & { \text { Lowes } } \
\text { Sales } & \$ 47,220 \
\text { Interest expense } & 287 \
\text { Tax expense } & 1,042 \
\text { Net income } & \$ 1,783
\end{array}$$
What is the times interest earned ratio for Lowes?

Question

Selected financial data for Lowes is provided below: 
$$\begin{array} { l r } 
\text { (\$ in millions) } &  { \text { Lowes } } \
\text { Sales } & \$ 47,220 \
\text { Interest expense } & 287 \
\text { Tax expense } & 1,042 \
\text { Net income } & \$ 1,783
\end{array}$$
What is the times interest earned ratio for Lowes?

Quizplus · Accepted Answer

The times interest earned ratio is calculated as (Net Income + Interest Expense + Tax Expense) / Interest Expense. For Lowes, this is ($1,783 + $287 + $1,042) / $287 = 10.8 times.

Selected Financial Data for Lowes Is Provided Below What Is the Times Interest Earned Ratio for Lowes? A)6

Selected Financial Data for Lowes Is Provided Below What Is the Times Interest Earned Ratio for Lowes?
A)6