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

Revenue	$4,074,424	Earnings from continuing operations	$229,240
Interest expense	13,962	Capital expenditures (CAPEX)	298,928
Tax expense	154,112	Total debt	669,000
Amortization expense	13,840	Average assets	2,481,992
Depreciation expense	95,600

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.

• Hint: Earnings from continuing operations is Under Armour's net income.
• Round answers to one decimal place (percentage ex: 0.2345 = 23.5%)

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