How does H. J. Boswell, Inc.'s capital structure affect its times interest earned ratio compared to its peer group?

H. J. Boswell, Inc. has a times interest earned ratio of 5.67, which is lower than the peer group's ratio of 7.0. This difference is primarily due to Boswell's higher debt level, with 53.5 percent of its capital structure being debt compared to the peer group's 35 percent.

The times interest earned ratio for H. J. Boswell, Inc. is calculated by dividing its net operating income (EBIT) of $382.5 million by its interest expense of $67.50 million, resulting in a ratio of 5.67. In contrast, the peer group's average ratio is 7.0, indicating that they can cover their interest expenses more comfortably. The reason for Boswell's lower ratio is its significantly higher reliance on debt in its capital structure, which increases its interest expenses and reduces its ability to cover those expenses with operating income.