Please compute times interest earned and fixed charge covera

Please compute times interest earned and fixed charge coverage for 2017. For times interest earned I got 7.69, but am unsure if I calculated it correctly.

2017 2016 2015 Sales and revenues: Sales of Machinery, Energy & Transportation Revenues of Financial Products Total sales and revenues 44,147 2,864 47,011 42,676S 35,773 S 2,786 45,462 2,764 38,537 Operating costs: Cost of goods sold Selling, general and administrative expenses Research and development expenses Interest expense of Financial Products Goodwill impairment charge Other operating (income) expenses Total operating costs 31,049 5,177 1,905 646 28,309 4,686 1,951 596 595 1,902 38,039 33,546 4,951 2,119 587 2,279 41,056 2,023 43,226 Operating profit 4,406 498 3,785 Interest expense excluding Financial Products Other income (expense) 531 207 505 146 507 161 Consolidated profit before taxes 4,082 139 3,439 Provision (benefit) for income taxes Profit (loss) of consolidated companies 192 (53) 916 3,339 743 2,523 Equity in profit (loss) of unconsolidated affiliated companies

Solution

Times Interest Earned = Operating Income / Interest expenses excluding financial products

= 4,406 / 531 = 8.29x

Fixed Coverage = Operating Income / (Interest expenses excluding financial products + Interest expenses of financial products)

Fixed Coverage = 4,406 / (531 + 646) = 3.74x