KTM, Polaris, and Arctic Cat are all competitors in the global marketplace. Comparative figures for KTM (www.KTM.com). along with selected figures from Polaris and Arctic Cat, follow.

Required 1. Compute the times interest earned ratio for the most recent two years for KTM using the data shown.
2. Which company of the three presented provides the best coverage of interest expense? Explain.

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KTM (EUR thousands) Polaris Arctic Cat Current Prior Key Figures Year Year Current Prior Year Year Current Prior Year Year Net income 20,818 2,660 Income taxes 1,709* (229) Interest expense Times interest earned. 9,693 4,256 ? ? 87.9 82.5 1,658.4 5.4 *KTM's income taxes is a "positive" for the current year, which is not normal and occurs because of tax loss carryforwards that are explained in advanced courses.