The times interest earned ratio for Company C and Company P.

Question

Analyze and compare Clorox and Procter & Gamble The Clorox Company (CLX) and The Procter & Gamble Company (PG) produce and sell packaged consumer products around the world. Income and interest expense information from financial statements for a recent year follows (in millions): Clorox Procter & Gamble Interest expense $88 $579 Income before income tax expense 983 13,369 a. Compute the times interest earned for each company. Round to one decimal place. Clorox: fill in the blank 1 Procter & Gamble: fill in the blank 2 b. If you were a lender to these two companies, which one appears to have the greater coverage of interest expense and thus the greater protection for your loan interest?

Answer 1

Question

Chapter 11, Problem 11.2MAD

a.

To determine

To Compute: The times interest earned ratio for Company C and Company P.

b.

To determine

To Indicate: The Company that appears to have the greater protection for loan interest.

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