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
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
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
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
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Answer 2
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| Answer 3
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Answer 4
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Answer 5 | ||
| 2. EBITA to interest expense | Answer 6
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Answer 7
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| Answer 8
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Answer 9
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Answer 10 | ||
| 3. Revenue (in $ billions) | Answer 11
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Answer 12 | ||
| 4. EBITA margin | Answer 13
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Answer 14
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| Answer 15
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Answer 16
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Answer 17 | ||
| 5. Operating margin | Answer 18
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Answer 19
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| Answer 20
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Answer 21
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Answer 22 | ||
| 6. Funds from operations/Debt | Answer 23
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Answer 24
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| Answer 25
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Answer 26
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Answer 27 | ||
| 7. (Funds from operations + Interest expense)/Interest expense | Answer 28
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Answer 29
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| Answer 30
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Answer 31
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Answer 32 | ||
| 8. EBITA to average assets | Answer 33
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Answer 34
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| Answer 35
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Answer 36
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Answer 37 | ||
| 9. CAPEX/Depreciation expense | Answer 38
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Answer 39
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| Answer 40
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Answer 41
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Answer 42 |
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