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Assigning a Long-Term Debt Rating Using Financial Ratios Refer to the information below from Stryker's 2018 financial statements. Use the information to answer the requirements
Assigning a Long-Term Debt Rating Using Financial Ratios Refer to the information below from Stryker's 2018 financial statements. Use the information to answer the requirements ($ millions). Revenue $13,601 Interest expense, gross $181 Depreciation expense 306 Dividends, including to noncontrolling interest 717 Amortization expense 417 Cash and cash equivalents 3,616 Operating profit (EBIT) 2,537 Marketable securities 83 Total debt 9,859 Average assets 24,713 Cash from operating activities 2,610 CAPEX 572 Funds from operations 2,852 16.3 $ a. Compute the following 10 Moody's metrics for Stryker for 2018. Round all answers (except Revenue) to one decimal place (example for percentage ratios: 0.2345 = 23.5%). Ratio Debt / EBITDA 3 EBITA to interest expense Revenue ($ millions) 13,601 Retained Cash Flow / Net Debt EBITA margin Operating margin FFO/ Debt 28.996 (FFO + Interest Expense)/Interest Expense EBITA to average assets CAPEX / Depreciation expense 96 X 21.7 96 18.7 96 16.8 1296 1.9
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