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Calculate the interest coverage ratio for Company Walmart Inc., given its earnings before interest and taxes (EBIT) of $29.37 billion and interest expense of $710
Calculate the interest coverage ratio for Company Walmart Inc., given its earnings before interest and taxes (EBIT) of $29.37 billion and interest expense of $710 million. Describe the interest coverage ratio as a solvency ratio used to measure a company's ability to meet interest obligations with its operating income. Discuss the significance of a high or low interest coverage ratio in assessing financial solvency and debt repayment capacity.
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