Calculating Ratios and Estimating Credit Rating The following data are from Amazons 2018 10-K report ($ millions).

Revenue	$232,887	Net income	$10,073
Interest expense	1,417	Capital expenditures (CAPEX)	13,427
Tax expense	1,197	Total debt	23,495
Amortization expense	8,979	Average assets	146,979
Depreciation expense	6,362

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 7.4.

b. Refer to Exhibit 7.4 and the ratios you calculated in part a. Estimate the credit rating that Moodys might assign to Amazon.

• Round answers to one decimal place (percentage ex: 0.2345 = 23.5%)

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