Assigning a Long-Term Debt Rating Using Financial Ratios

Refer to the information below from Stryker’s 2018 financial statements. Use the information to answer the requirements ($ millions).

Revenue	$13,601	Interest expense, gross	$181
Depreciation expense	306	Dividends, including to noncontrolling interest	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	2,852

a. Compute the following 10 Moody’s metrics for Stryker for 2018.
Round all answers (except Revenue) to one decimal place (example for percentage ratios: 0.2345 = 23.5%).

Ratio
Debt / EBITDA	Answer
EBITA to interest expense	Answer
Revenue ($ millions)	Answer
Retained Cash Flow / Net Debt	Answer
EBITA margin	Answer
Operating margin	Answer
FFO / Debt	Answer
(FFO + Interest Expense)/Interest Expense	Answer
EBITA to average assets	Answer
CAPEX / Depreciation expense	Answer