Question: Looking at Table, why do electric utilities have such a low times interest- earned ratio? Why is the ratio for information technology companies so high?

Looking at Table, why do electric utilities have such a low times interest- earned ratio? Why is the ratio for information technology companies so high?

Nonfinancial companies in Standard and Poor's 500 index and industry components, size-weighted averages. (Numbers in parentheses are the number of companies in sample.) 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Nonfinancial Companies in Standard & Poor's 500 Debt to total assets* (%) Times interest earned 27 28 26 23 22 22 24 28 28 27 5.5 5.7 6.5 7.8 8.1 8.8 8.1 6.7 5.2 7.0 Industry Debt Ratios 2010 Debt to total assets (%) 32 29 16 21 41 13 27 28 35 Times interest earned 5.4 9.4 Consumer discretionary (80) Consumer staples (41) Energy (41) Health care (52) Industrials (59) Information technology (74) Materials (30) Telecommunications services (8) Utilities (33) 14.1 4.7 26.0 5.9 4.0 3.2

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