E4-22. 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... Depreciation expense. Amortization expense. Operating profit (EBIT) Total debt. Cash from operating activities Funds from operations. $13,601 Interest expense, gross 306 Dividends, including to noncontrolling interest ... 417 Cash and cash equivalents 2,537 Marketable securities 9,859 Average assets. . 2,610 CAPEX. 2,852 $ 181 717 3,616 83 24,713 572 Required a. Compute the following 10 Moody's metrics for Stryker for 2018. 1. Debt/EBITDA 6. Operating margin 2. EBITA to interest expense 7. Funds From Operations/Debt 3. Revenue 8. (Funds From Operations + Interest Expense)/Interest Expense 4. Retained Cash Flow/Net Debt 9. EBITA to average assets 5. EBITA margin 10. CAPEX/Depreciation expense b. Use your computations from part a, along with measures in Exhibit 4.8, to estimate the long-term debt rating for Stryker. E4-22. 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... Depreciation expense. Amortization expense. Operating profit (EBIT) Total debt. Cash from operating activities Funds from operations. $13,601 Interest expense, gross 306 Dividends, including to noncontrolling interest ... 417 Cash and cash equivalents 2,537 Marketable securities 9,859 Average assets. . 2,610 CAPEX. 2,852 $ 181 717 3,616 83 24,713 572 Required a. Compute the following 10 Moody's metrics for Stryker for 2018. 1. Debt/EBITDA 6. Operating margin 2. EBITA to interest expense 7. Funds From Operations/Debt 3. Revenue 8. (Funds From Operations + Interest Expense)/Interest Expense 4. Retained Cash Flow/Net Debt 9. EBITA to average assets 5. EBITA margin 10. CAPEX/Depreciation expense b. Use your computations from part a, along with measures in Exhibit 4.8, to estimate the long-term debt rating for Stryker