Hasbro, Inc. (HAS) and Mattel, Inc. (MAT) are the two largest toy companies in North America. Condensed liabilities and stockholders’ equity from a recent balance sheet are shown for each company as follows (in thousands):

The operating income and interest expense from the income statement for each company were as follows (in thousands):

a. Determine the ratio of liabilities to stockholders’ equity for both companies.
b. Determine the times interest earned ratio for both companies.
c. Interpret the ratio differences between the two companies.

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Liabilities: Current liabilities Long-term debt Total liabilities Total stockholders' equity Total liabilities and stockholders' equity Hasbro Mattel $1,257,082 $1,276,907 4,603,016 3,556,605 $4,833,512 $5,860,098 $2,995,530 $8,855,628 $ 491,714 $5,325,226