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: LOADING... . 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?

Net operating income (EBIT) $11,774,000 $1,469,000 $9,166,000

Interest expense ( 919,000 ) ( 830,000 ) ( 711,000 )

Earnings before taxes $10,855,000 $9,639,000 $8,455,000

Income taxes ( 4,012,000 ) ( 3,631,000 ) ( 3,082,000 )

Net income $6,843,000 $6,008,000 $5,373,000