Ratio of liabilities to stockholders’ equity and ratio of fixed assets Obj. 4 to long-term liabilities Recent balance sheet information for two companies in the food industry, Mondelez International, Inc. (MDLZ), and The Hershey Company (HSY), is as follows (in thousands):

Mondelez Hershey Net property, plant, and equipment $ 8,229,000 $2,177,248 Current liabilities 14,417,000 1,909,443 Long-term debt 13,217,000 2,347,455 Other long-term liabilities 8,689,000 439,748 Stockholders’ equity 25,215,000 827,687

a. Determine the ratio of liabilities to stockholders’ equity for both companies. Round to one decimal place.

b. Determine the ratio of fixed assets to long-term liabilities for both companies. Round to one decimal place.

c. Interpret the ratio differences between the two companies.

AppendixLO1