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Calculating Ratios and Estimating Credit Rating The following data are from Kellogg's 10 Kreport dated January 2 2016 (5 millions). Revenue $13.650 Earnings from continuing
Calculating Ratios and Estimating Credit Rating The following data are from Kellogg's 10 Kreport dated January 2 2016 (5 millions). Revenue $13.650 Earnings from continuing operations 5654 Interest expense 236 Capital expenditures (CAPE 553 Tax expense 190 Total debt 7.534 Amortization expense Average assets 15,434 Depreciation expense 526 a. Use the data above to calculate the following ratios: EBITA Average assets. EBITA Margin, EBIT interest expenses. DebLEBITDA CAPEXJDepreciation Expense. b. Using the ratios calculated in part a. estimate the credit rating that Moody's might assign to Kellogg Refer to Exhibit 7.6 in the textbook for ratio definitions and credit ratings Round answers to one decimal place (percentage ec 0.2345 = 23.5%) EBITA A ssets EBITA margo EBITA expense DebuEBITDA CAPEUDep. expense Incorrect 85 KB 85 Bas 85 MB
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