Question: MAD 1 1 - 1 Analyze and compare Amazon.com and Walmart Amazon.com, Inc. ( ANIZN ) is one of the largest Internet retailers in the
MAD Analyze and compare Amazon.com and Walmart
Amazon.com, Inc. ANIZN is one of the largest Internet retailers in the world. Walmart Inc. WIMT is the largest retailer in the United States. Amazon and Walmart compete in similar markets; however, Walmart 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:
a Compute the times interest earned ratio for both companies for the two years. Round to one decimal place.
b Interpret Amazon's interest coverage from Year to Year
c Does a times interest earned ratio less than mean that creditors will not get paid interest?
d Interpret Walmart's interest coverage from Year to Year
e Which company appears to have the greater protection for creditors?
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