At May 31, 2016, FedEx Corporation reported the following amounts (in millions) in its financial statements:

Required:

1. Compute the debt-to-assets ratio and times interest earned ratio (to two decimal places) for 2016 and 2015.

2. Use your answers to requirement 1 to determine whether, in 2016, (a) creditors were providing a greater (or lesser) proportion of financing for FedEx’s assets and (b) FedEx was more (or less) successful at covering its interest costs, as compared to 2015.

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2016 2015 Total Assets Total Liabilities Interest Expense Income Tax Expense Net Income $46,000 $36,500 32,200 21,500 340 240 920 580 1,050 1,820