Refer to the annual report of CVS Corporation and the financial statements of Southwest Airlines Co. in

Question:

Refer to the annual report of CVS and the of Southwest Airlines Co. in the Supplement to Chapter 1. Calculate the debt to equity ratio and the interest coverage ratio for both companies' two most recent years. (Round to one decimal place.) Find the note to the that contains information on leases and lease commitments by CVS. Southwest's lease expenses were $847 million and $631 million in 2011 and 2010, respectively, and total lease commitments for future years were $5,583 million. What effect do the total lease commitments and lease expense have on your assessment of the ratios you calculated? Evaluate and comment on the relative performance of the two companies with regard to debt financing. Which company has more risk of not being able to meet its interest obligations? How does leasing affect the analysis? Explain.
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...