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Question 3 Incomplete answer Marked out of 10.00 Flag question Calculating Ratios and Estimating Credit Rating The following data are from Amazon's 2018 10-K
Question 3 Incomplete answer Marked out of 10.00 Flag question Calculating Ratios and Estimating Credit Rating The following data are from Amazon's 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 Moody's might assign to Amazon. Round answers to one decimal place (percentage ex: 0.2345 = 23.5%) Ratio Moody's rating EBITA/Avg. assets 0% Aa EBITA margin 0% EBITA/Int. expense 0 Debt/EBITDA 0 CAPEX/Dep. expense 0 Please answer all parts of the question.
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