Loblaw Companies Limited reported the following selected information (in millions):

Instructions
(a) Calculate Loblaw's debt to total assets and interest coverage ratios for each year.
(b) Based on the ratios calculated in part (a), what conclusions can you make about Loblaw's solvency?
TAKING IT FURTHER
Explain the impact that an operating lease has on a company's solvency ratios.

Transcribed Image Text:

Jan. 3, 2015 Dec. 28, 2013 Total assets Total liabilities Interest expense Income tax expense Profit $33,684 20,897 466 25 53 $20,741 13,741 287 226 627