Refer to the information below from Stryker’s financial statements. Selected Information (in $ millions) Revenue $13,601 Interest expense, gross $181 Depreciation expense 306 Dividends 717 Amortization expense 417 Cash and cash equivalents 3,616 Operating profit (EBIT) 2,537 Marketable securities 83 Total debt 9,859 Average assets 24,713 Cash from operating activities 2,610 CAPEX 572 Funds from operations (FFO) 2,852 Required a. Compute the following Moody’s metrics for Stryker and identify the Moody's rating (or rating range if the metric is between two ratings) for each metric, using the measures in Exhibit 4.4. If a metric isn't a ratio, enter the amount in the "Result" column. Numerator Denominator Result Rating or Rating range 1. Debt/EBITDA Answer 1 Answer 2 Answer 3 Answer 4 Answer 5 2. EBITA to interest expense Answer 6 Answer 7 Answer 8 Answer 9 Answer 10 3. Revenue (in $ billions) Answer 11 Answer 12 4. EBITA margin Answer 13 Answer 14 Answer 15 Answer 16 Answer 17 5. Operating margin Answer 18 Answer 19 Answer 20 Answer 21 Answer 22 6. Funds from operations/Debt Answer 23 Answer 24 Answer 25 Answer 26 Answer 27 7. (Funds from operations + Interest expense)/Interest expense Answer 28 Answer 29 Answer 30 Answer 31 Answer 32 8. EBITA to average assets Answer 33 Answer 34 Answer 35 Answer 36 Answer 37 9. CAPEX/Depreciation expense Answer 38 Answer 39 Answer 40 Answer 41 Answer 42

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 9.4.10P: Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of...

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Question

Refer to the information below from Stryker’s financial statements.

Selected Information (in $ millions)
Revenue	$13,601	Interest expense, gross	$181
Depreciation expense	306	Dividends	717
Amortization expense	417	Cash and cash equivalents	3,616
Operating profit (EBIT)	2,537	Marketable securities	83
Total debt	9,859	Average assets	24,713
Cash from operating activities	2,610	CAPEX	572
Funds from operations (FFO)	2,852

Required

a. Compute the following Moody’s metrics for Stryker and identify the Moody's rating (or rating range if the metric is between two ratings) for each metric, using the measures in Exhibit 4.4. If a metric isn't a ratio, enter the amount in the "Result" column.

	Numerator	Denominator	Result	Rating or Rating range
1. Debt/EBITDA	Answer 1	Answer 2
	Answer 3	Answer 4		Answer 5
2. EBITA to interest expense	Answer 6	Answer 7
	Answer 8	Answer 9		Answer 10
3. Revenue (in $ billions)			Answer 11	Answer 12
4. EBITA margin	Answer 13	Answer 14
	Answer 15	Answer 16		Answer 17
5. Operating margin	Answer 18	Answer 19
	Answer 20	Answer 21		Answer 22
6. Funds from operations/Debt	Answer 23	Answer 24
	Answer 25	Answer 26		Answer 27
7. (Funds from operations + Interest expense)/Interest expense	Answer 28	Answer 29
	Answer 30	Answer 31		Answer 32
8. EBITA to average assets	Answer 33	Answer 34
	Answer 35	Answer 36		Answer 37
9. CAPEX/Depreciation expense	Answer 38	Answer 39
	Answer 40	Answer 41		Answer 42

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