Question: Analyze and compare Amazon.com and Wal-Mart Amazon.com, Inc. (AMZN) is one of the largest internet retailers in the world. Wal-Mart Stores, Inc. (WMT) is the
Analyze and compare Amazon.com and Wal-Mart Amazon.com, Inc. (AMZN) is one of the largest internet retailers in the world. Wal-Mart Stores, Inc. (WMT) is the largest retailer in the United States. Amazon and Wal-Mart compete in similar markets; however, Wal-Mart sells through both traditional retail stores and the internet, while Amazon sells only through the internet. Interest expense and income before income tax expense from the financial statements of both companies for two recent years follow (in millions): Amazon Walmart Year 2 Year 1 Year 2 Year 1 Interest expense $484 $459 $2,548 $2,461 Income (loss) before income tax expense 3,892 1,568 21,638 24,799 a. Compute the times interest earned ratio for both companies for the two years. Round your answers to one decimal place. Amazon Walmart Year 2 Year 1 Year 2 Year 1 Times Interest Earned Ratio fill in the blank 1 fill in the blank 2 fill in the blank 3 fill in the blank 4 b. Based on your calculations for Amazon above, which of these statements is correct? c. Does a times interest earned ratio less than 1.0 mean that creditors will not get paid interest? d. Interpret Walmart's interest coverage from Year 1 to
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