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Calculate times interest earned ratio for aventura company

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Reference no: EM132937416

The following information was taken from the statement of earnings of Aventura Company for the years 2017 through 2019 (in millions):

                               2019                2018               2017
Interest expense        $612              $62              $693
Income taxes            1,1041            1397             1,421
Profit                        1,300             1,850            1,966

Required:

Problem (1) Calculate the times interest earned ratio for 2017 through 2019.

Problem (2) Comment on the sufficiency of the ratio.

Reference no: EM132937416

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