(b). Consider the Moody's rating for each ratio in part a. and determine an overall Moody's rating for the company. Provide rationale for your answers.

Parker Hannifin Illinois Tool Works ($ thousands) Moody's Parker Hannifin Numerator Denominator Metric Rating Debt to EBITDA $ 11,480,135 * $ 4,978,092 x 2.31 EBITA / Interest expense $ 4,978,092 * $ 255,252 19.5 A Revenue in billions 15.86 v Baa EBITA Margin 4,978,092 $15,861,608 31.38454 % A Operating Margin $ 2,854,346 V 15,861,608 17.99531 9% A FFO / Debt $ 3,439,932 x $ 11,480,135 29.96421 % Ba (FFO + Interest expense) / Interest exp. $ 3,695,184 x $ 255,252 14.48 Baa EBITA / Average assets 4,978,092 $23,142.572 21.51054 % A CAPEX / Depreciation expense 142,265 x $ 2,123,746 x 0.07 Caa