Calculating Ratios and Estimating Credit Rating The following data...
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Calculating Ratios and Estimating Credit Rating The following data are from Kellogg's 10-K report dated January 2. 2016 (s millions). Earnings from continuing operations Capital expenditures (CAPEX) Revenue Interest expense Tax expense Amortization expense Depreciation expense526 $635 553 7,634 15,334 $13,625 233 174 Total debt 8Average assets a. Use the data above to calculate the following ratios: EBITA/Average assets. EBITA Margin, EBITA/Interest expenses, Debt/EBITDA CAPEX/Depreciation Expense. to Kellogg. Refer to Exhibit 7.6 in the textbook for ratio definitions and credit ratings. Round answers to one decimal place (percentage ex: 0.2345 = 23.5%) b. Using the ratios calculated in part a. estimate the credit rating that Moody's might assign Ratio Moody's rating BITA Avg. assets EBITA margin 0 96 EBITAlint, expense Debt/EBITDA 0 CAPEX/Dep. expense Check
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