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ACT5725 The following data are from Under Armour's 2015 10-K report ($ thousands). Revenue $3,985,535 Earnings from continuing operations $233,572 Interest expense 14,406 Capital expenditures

ACT5725

The following data are from Under Armour's 2015 10-K report ($ thousands).

Revenue $3,985,535

Earnings from continuing operations

$233,572
Interest expense 14,406

Capital expenditures (CAPEX)

298,928
Tax expense 154,112

Total debt

669,000
Amortization expense 13,840

Average assets

2,481,992
Depreciation expense 90,600

a. Use the data above to calculate the following ratios: EBITA/Average assets, EBITA Margin, EBITA/Interest expenses, Debt/EBITDA, CAPEX/Depreciation Expense.

b. Using the ratios you calculate in part a., estimate the credit rating that Moody's might assign to Under Armour.

Refer to Exhibit 7.6 in the textbook for ratio definitions and credit ratings. Round answers to one decimal place (percentage ex: 0.2345 = 23.5%)

Moody's
Ratio rating
EBITA/Avg. assets
EBITA margin
EBITA/Int. expense
Debt/EBITDA
CAPEX/Dep. expense

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