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Comment on the sufficiency of the ratio

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Reference no: EM133043858

Question - 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 - Using the answer space provided below:

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

(2) Comment on the sufficiency of the ratio.

Reference no: EM133043858

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