(Analyzing coverage? ratios) The income statements for Home? Depot, Inc.? (HD), spanning the period? 2014-2016 (just before the housing? crash, so these are representative? years) are found here:
$ thousands 2016 2015 2014
Net operating income (EBIT) $11,774,000 $10,469,000 $9,166,000
Interest expense $(919,000) $(830,000) $(711,000)
Earnings before taxes $10,855,000 $9,639,000 $8,455,000
Income taxes $(4,012,000) $(3,631,000) $(3,082,000)
Net income $6,843,000 $6,008,000 $5,373,000
a. Calculate the times interest earned ratio for each of the years for which you have data.
b. What is your assessment of how the? firm's ability to service its debt obligations has changed over this? period?