Johnson and Johnson

Symbol
JNJ4340189 Coupon Rate 1.650%
Maturity Date :03/01/2021
BOND RATING-AAA as per s&p
Ratio ratios cutoff
EBIT INTEREST COVERAGE 22.06 23.8
MULTIPLE
EBITDA INTEREST COVERAGE 18.91 25.5
MULTIPLE
FUNDS FROM 200.2 203.3
OPERATION/TOTAL DEBT(%)
FREE OPERATING CASH 125.9 127.6
FLOW/TOTAL DEBT(%
)
TOTAL DEBT/EBITDA MULTIPLE 1.0 0.4
RETURN ON CAPITAL% 28 27.6
TOTAL 13 12.4
DEBT/TOTALDEBT+EQUITY(%)

2.Symbol; JNJ4340193 Coupon Rate 2.450%

Maturity Date 03/01/2026
BOND RATING-AAA as per s&p
cutoff

EBIT INTEREST COVERAGE 22.6 23.8

MULTIPLE
EBITDA INTEREST COVERAGE 18.91 25.5
MULTIPLE
FUNDS FROM 0.52 203.3
OPERATION/TOTAL DEBT(%)
FREE OPERATING CASH 125.9 127.6
FLOW/TOTAL DEBT(%
)
TOTAL DEBT/EBITDA MULTIPLE 1.0 0.4
RETURN ON CAPITAL% 28 27.6
TOTAL 13 12.4
DEBT/TOTALDEBT+EQUITY(%)

Since all the bonds of johnson and johnson having the same bond rating so the result will be
same for all the bonds issued.
INTERPRETATION: JOHNSON AND JOHNSON bonds credit rating shows a good markup to
the cut-off. Some of the cutoff is not met but that can be negligible as the bonds are more
secure

2.GOOGLE.INC
Coupon Rate3.625% Maturity Date 05/19/2021
BOND RATING – AA+

An obligor has VERY STRONG capacity to meet its financial commitments. It differs from the highest-
rated obligors only to a small degree.

cutoff

EBIT INTEREST COVERAGE 20.54 19.5

MULTIPLE
EBITDA INTEREST COVERAE 19.05 24.6
MULTIPLE
FUNDS FROM 23.48 79.9
OPERATION/TOTAL DEBT(%)
FREE OPERATING CASH 52.5 44.5
FLOW/TOTAL DEBT(%
)
TOTAL DEBT/EBITDA MULTIPLE 1.0 0.9
RETURN ON CAPITAL% 23.48 27.0
TOTAL 26.46 28.3
DEBT/TOTALDEBT+EQUITY(%)

2.Symbol GOOG4099823
Coupon Rate 3.375% Maturity Date 02/25/2024

BOND RATING-AA+ cutoff

EBIT INTEREST COVERAGE 20.54 19.5
MULTIPLE
EBITDA INTEREST COVERAE 19.05 24.6
MULTIPLE
FUNDS FROM 23.48 79.9
OPERATION/TOTAL DEBT(%)
FREE OPERATING CASH 52.5 44.5
FLOW/TOTAL DEBT(%
)
TOTAL DEBT/EBITDA MULTIPLE 1.0 0.9
RETURN ON CAPITAL% 23.48 270
 TOTAL 26.46 28.3
DEBT/TOTALDEBT+EQUITY(%)

Interpretation: An obligor has VERY STRONG capacity to meet its financial commitments.
It differs from the highest-rated obligors only to a small degree. But here it is not qualifying
for AA rated bonds and making it shift to lower side that to A rated bonds.

3. HARLEY DAVIDSON
Symbol: HOG4596216 Coupon Rate 3.350 %
Maturity Date 02/15/2023
Bond rating-BBB
Adequate capacity to meet financial commitments, but more subject to adverse economic conditions.

cutoff

EBIT INTEREST COVERAGE 3.8 4.7

MULTIPLE
EBITDA INTEREST COVERAE 4 6.5
MULTIPLE
FUNDS FROM 29.38 35.5
OPERATION/TOTAL DEBT(%)
FREE OPERATING CASH 24.24 17.3
FLOW/TOTAL DEBT(%
)
TOTAL DEBT/EBITDA MULTIPLE 1.5 2.2
RETURN ON CAPITAL% 6.10 13.4
TOTAL 40 42.5
DEBT/TOTALDEBT+EQUITY(%)

Interpretation: Harley Davidson bonds are of BBB ratings but are more prone to the B
rating because a liitle fluctuations in the financial statemens of Harley will affect their ratios
and are subject to adverse economic conditions in fulfilling their financial commitments .

4. HEWLETT PACKARD ENTERPRISE CO

Symbol HPQ4432257 Coupon Rate 4.40%
Maturity Date 10/15/2022
Bond rating-BBB
 An obligor has ADEQUATE capacity to meet its financial commitments. However, adverse economic
conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to
meet its financial commitments.

cutoff

EBIT INTEREST COVERAGE 3 4.7

MULTIPLE
EBITDA INTEREST COVERAE 7 6.5
MULTIPLE
FUNDS FROM 30 35.9
OPERATION/TOTAL DEBT(%)
FREE OPERATING CASH 20 17.3
FLOW/TOTAL DEBT(%
)
TOTAL DEBT/EBITDA MULTIPLE 1 2.2
RETURN ON CAPITAL% 15 13.4
TOTAL 37 42.5
DEBT/TOTALDEBT+EQUITY(%)

INTERPRETATION: Hp bonds are again adequate. But the performance is hifting them for
a lower credit rating for the bonds which will be issued later on.
The bonds generally vary from 3-5 years to maturity

5.MOTOROLA
Symbol MSI3853653 Coupon Rate 3.750 %
Maturity Date 05/15/2022

BOND RATING- BBB-

An obligor has ADEQUATE capacity to meet its financial commitments. However, adverse economic

conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor

to meet its financial commitments. Cut off

EBIT INTEREST COVERAGE 4.75 4.7
MULTIPLE
EBITDA INTEREST COVERAE 7.45 6.5
MULTIPLE
FREE OPERATING CASH 15.91 17.3
FLOW/TOTAL DEBT(%
)
TOTAL DEBT/EBITDA MULTIPLE 2.5 2.2
RETURN ON CAPITAL% 9 13.4
TOTAL 61.10 42.5
DEBT/TOTALDEBT+EQUITY(%)
Interpretation: The actual cutoff and the calculated cutoff don’t have much deviation again
with the bonds issued by Motorola. There is consistency with the Motorola bonds issued in
the past

.
6.GOLDMAN SACHS
Symbol GS4641226 Coupon Rate 3.200 %
Maturity Date 06/05/2020
BOND RATING-BBB
An obligor has ADEQUATE capacity to meet its financial commitments. However, adverse economic
conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor
to meet its financial commitments.. cut off
EBIT INTEREST COVERAGE 4.73 4.7
MULTIPLE
EBITDA INTEREST COVERAE 6.66 6.5
MULTIPLE
FUNDS FROM 11.29 13.4
OPERATION/TOTAL DEBT(%)
FREE OPERATING CASH 15.91 17.3
FLOW/TOTAL DEBT(%
)
TOTAL 51 42.5
DEBT/TOTALDEBT+EQUITY(%)

Interpretation: It doesnot passes to any of its cutoff mark so the risk associated with the
same can be moderate.

7.CITIBANK
Symbol C459772 Coupon Rate 2.531%
Maturity Date 02/12/2021

BOND RATING:A+

Strong capacity to meet financial obligations, but somewhat susceptible to adverse economic
conditions and changes in circumstances.

Cut off
 EBIT INTEREST COVERAGE 5.6 8.0
MULTIPLE
EBITDA INTEREST COVERAE 7.9 10.2
MULTIPLE
FUNDS FROM 38 48.0
OPERATION/TOTAL DEBT(%)
FREE OPERATING CASH 22.3 25.0
FLOW/TOTAL DEBT(%
)
TOTAL DEBT/EBITDA MULTIPLE 1 1.6
RETURN ON CAPITAL% 15 17.5

Interpretation: Citbank has A+ bond rating for the reason that the bank is known for its
credit worthiness. An obligor has STRONG capacity to meet its financial commitments but is
somewhat more susceptible to the adverse effects of changes in circumstances and
economic conditions than obligors in higher-rated categories.

However there are no such deviation between the calculated values and the cut off so A+
credit rating still can be considered.

8.WALMART
Symbol WMT.GG Coupon Rate 6.750%
Maturity Date 10/15/2023

BOND RATING-AA

Very strong capacity to meet financial obligations. An obligor has VERY STRONG capacity to meet its
financial commitments. It differs from the highest-rated obligors only to a small degree.

Cut off

EBIT INTEREST COVERAGE 6.5 19.5

MULTIPLE
EBITDA INTEREST COVERAE 11.0 24.6
MULTIPLE
FUNDS FROM 12.52 79.9
OPERATION/TOTAL DEBT(%)
FREE OPERATING CASH 28.6 44.5
FLOW/TOTAL DEBT(%
)
TOTAL DEBT/EBITDA MULTIPLE 1.8 0.9
RETURN ON CAPITAL% 17.4832 27.0
Interpretation:The cutoff cannot be reached by Walmart due to losing its identity in the
market so bonds valuation as per current financial scenario is not matching.
So there is need to Revise the credit rating given to bonds as per S&P

9. MICROSOFT CORP
Symbol MSFT4211183 Coupon Rate 2.375%
Maturity Date 02/12/2022

BOND RATING-AAA
An obligor has EXTREMELY STRONG capacity to meet its financial commitments

Cut off
EBIT INTEREST COVERAGE 24 23.8
MULTIPLE
EBITDA INTEREST COVERAGE 24.3 25.5
MULTIPLE
FUNDS FROM 205 203.3
OPERATION/TOTAL DEBT(%)
FREE OPERATING CASH 124 127.6
FLOW/TOTAL DEBT(%
)
TOTAL DEBT/EBITDA MULTIPLE 0.3 0.4
RETURN ON CAPITAL% 29 27.6
TOTAL 13.1 12.4
DEBT/TOTALDEBT+EQUITY(%)

Interpretation: Microsoft bond ratings for all the bonds issued are AAA rated that makes this
company least risky.
The ratio which proves this credit worthiness are mostly nearby to the cut-off as per
S&P.There are least deviation between the calculated value and cut off.

10.JP MORGAN
Symbol JPM4593573 Coupon Rate2.543%
Maturity Date 02/01/2021
BOND RATING-A+
Strong capacity to meet financial obligations, but somewhat susceptible to adverse economic
conditions and changes in circumstances.

Cut off

EBIT INTEREST COVERAGE 4 8.0

MULTIPLE
EBITDA INTEREST COVERAE 6.5 10.2
MULTIPLE
FUNDS FROM 35.9 48.0
OPERATION/TOTAL DEBT(%)
FREE OPERATING CASH 17.3 25.0
FLOW/TOTAL DEBT(%
)
TOTAL DEBT/EBITDA MULTIPLE 2.2 1.6
RETURN ON CAPITAL% 13.4 17.5

Interpretation: Jp Morgan bonds itself are A+ rated bonds But however while calculating the
ratio to prove the same the credit worthiness is loosing and the are shifting towards the
lower side. However these cut off are taken from S&p 2006 data hence not as much realiable
too.