(Related to Checkpoint 15.1) (Analyzing coverage ratios) The income statements for Home Depot, Inc. (HD), spanning the period 2014-2016 (just before the housing crash, so these are representative years) are found here: .. a. Calculate the times interest earned ratio for each of the years for which you have data. b. What is your assessment of how the firm's ability to service its debt obligations has changed over this period? 2 $ thousands Net operating income (EBIT) Interest expense Earnings before taxes Income taxes 2016 $11,774,000 (919,000) $10,855,000 (4,012,000) $6,843,000 2015 $10,469,000 (830,000) $9,639,000 (3,631,000) 2014 $9,166,000 (711,000) $8,455,000 (3,082,000) $5,373,000 Net income $6,008,000