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ontinuing Company AnalysisAmazon: Times interest earned Amazon.com, Inc. is one of the largest Internet retailers in the world. Walmart Stores, Inc. is the largest retailer

ontinuing Company AnalysisAmazon: Times interest earned

Amazon.com, Inc. is one of the largest Internet retailers in the world. Walmart Stores, Inc. is the largest retailer in the United States. Amazon and Walmart compete in similar markets; however, Walmart sells through both traditional retail stores and the Internet, while Amazon sells only through the Internet. Interest expense and income before income tax expense from the financial statements of both companies for two recent years follow (in millions):

Amazon Walmart
Year 2 Year 1 Year 2 Year 1
Interest expense $ 210 $141 $2,461 $2,335
Income (loss) before income tax expense (111) 274 24,799 24,656

a. Compute the times interest earned ratio for both companies for the two years. Round your answers to one decimal place.

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