Calculating Ratios and Estimating Credit Rating The following data are from Under Armour’s 2015 10-K report ($ thousands).

Revenue . . . . . . . . . . . . . . $3,963,313 Earnings from continuing operations . . . . . $ 232,573 Interest expense. . . . . . . . 14,628 Capital expenditures (CAPEX) . . . . . . . . . . 298,928 Tax expense . . . . . . . . . . . 154,112 Total debt . . . . . . . . . . . . . . . . . . . . . . . . . . 669,000 Amortization expense. . . . 13,840 Average assets . . . . . . . . . . . . . . . . . . . . . . 2,481,992 Depreciation expense. . . . 87,100

a. Use the data above to calculate the following ratios: EBITA/Average assets, EBITA Margin, EBITA/Interest expense, Debt/EBITDA, CAPEX/Depreciation Expense. Definitions for these ratios are in Exhibit 7.6.

b. Refer to Exhibit 7.6 and the ratios you calculated in part

a. Estimate the credit rating that Moody’s might assign to Under Armour.