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. Round to one decimal place.

b. Determine the times interest earned ratio for both companies. Round to one decimal place. 

c. Interpret the ratio differences between the two companies.

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Hasbro Mattel Liabilities: Current liabilities $1,505,573 2,580,439 $4,086,012 $1,617,859 1,588,067 $3,205,926 Long-term debt Total liabilities Total stockholders'equity Total liabilities and stockholders' equity $1,862,736 $5,068,662 $2,407,782 $6,493,794 Mattel Hasbro Operating income (before income tax expense) Interest expense $692,489 97,405 $409,472 95,118