Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Refer to the information below from Nordstrom Inc.s 2016 financial statements. Use the information to answer the requirements ($ millions). Sales $14,095 Depreciation expense 560

Refer to the information below from Nordstrom Inc.s 2016 financial statements. Use the information to answer the requirements ($ millions).

Sales $14,095
Depreciation expense 560
Tax expense 376
Interest expense, gross 153
Earnings from continuing operations (Net income) 600
EBITA 1,117
Cash 595
Average total assets 8,472
Total debt 2,805
Noncurrent deferred tax liabilities 324
Noncontrolling interest 0
Equity 871
Dividends paid 1,185
Cash from operating activities 2,451

a. Compute the following seven Moodys metrics for Nordstrom. See Appendix 4A for definitions.

Round answers to one decimal place (example for percentage answers: 0.2345 = 23.5%).

Ratio 2016
EBITA to average assets

%

Operating margin

%

EBITA margin

%

EBITA interest coverage

Debt to EBITDA

Debt to book capitalization

%

Retained cash flow to net debt

%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Price Of Football Understanding Football Club Finance

Authors: Kieran Maguire

3rd Edition

1788216830, 978-1788216838

More Books

Students also viewed these Accounting questions

Question

2. In Prob. 1, find a basis for S S.

Answered: 1 week ago

Question

Job type Retail sales, managerial, human resources, etc.

Answered: 1 week ago