Question
The income statements for Home Depot, Inc. (HD) spanning the period 2014-2016 are found below: 2014 2015 2016 Earnings before interest and taxes $7,316,000 $9,700,000
The income statements for Home Depot, Inc. (HD) spanning the period 2014-2016 are found below:
|
| 2014 | 2015 | 2016 |
| Earnings before interest and taxes | $7,316,000 | $9,700,000 | $9,425,000 |
| Interest expense | (696,000) | (392,000) | (143,000) |
| Income before tax | $6,620,000 | $9,308,000 | $9,282,000 |
| Income tax expense | (2,410,000) | (3,547,000) | (3,444,000) |
| Net Income | $4,210,000 | $5,761,000 | $5,838,000 |
- Calculate the times interest earned ratio for each of the years for which you have data. What does this ratio tell you about Home Depot? What is your assessment of how the firms ability to service its debt obligations has changed over this period?
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The Finance Acts Of 1915 And 1916 An Annotated Reprint Of The Income Tax Provisions Of The New Acts
Authors: Great Britain. Accountant
1st Edition
1177442906, 9781177442909
