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Hi Im working on this excercise and I need some help thank you Refer to the information below from Nordstrom Inc.'s 2016 financial statements. Use
Hi Im working on this excercise and I need some help thank you
Refer to the information below from Nordstrom Inc.'s 2016 financial statements. Use the information to answer the requirements ($ millions). Sales $15,539 Depreciation expense 591 Tax expense 407 Interest expense, gross 184 Earnings from continuing operations (Net income) 766 EBITA 1,376 Cash 626 Average total assets 9,916 Total debt 3,002 Noncurrent deferred tax liabilities 459 Noncontrolling interest 0 Equity 871 Dividends paid 1,185 Cash from operating activities 2,451 a. Compute the following seven Moody's metrics for Nordstrom. See Appendix 4A for definitions. Round answers to one decimal place (example for percentage answers: 0.2345 = 23.5%). Ratio EBITA to average assets Operating margin EBITA margin 2016 % % % EBITA interest coverage Debt to EBITDA Debt to book capitalization Retained cash flow to net debt % % b. Use your computations from part a, along with measures in Exhibit 4.7, to estimate the longterm debt rating for Nordstrom. Based on the above computations, the rating for Nordstrom's longterm debt would fall in the (AaaAa / ABaa / BaB / CaaC)Step by Step Solution
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