Selected financial data for Home Depot is provided below: $$\begin{array} { l r }
\text { (\$ in millions) } & \underline { \text { Home Depot } } \
\text { Sales } & \$ 66,176 \
\text { Interest expense } & 676 \
\text { Tax expense } & 1,362 \
\text { Net income } & \$ 2,620
\end{array}$$ What is the times interest earned ratio for Home Depot?

Question

Selected financial data for Home Depot is provided below: $$\begin{array} { l r } 
\text { (\$ in millions) } & \underline { \text { Home Depot } } \
\text { Sales } & \$ 66,176 \
\text { Interest expense } & 676 \
\text { Tax expense } & 1,362 \
\text { Net income } & \$ 2,620
\end{array}$$ What is the times interest earned ratio for Home Depot?

Quizplus · Accepted Answer

The times interest earned ratio is calculated by dividing net income by interest expense. For Home Depot, the times interest earned ratio is $2,620 / $676 = 3.9 times.

Selected Financial Data for Home Depot Is Provided Below What Is the Times Interest Earned Ratio for Home Depot