Analysis of debt ratios Financial information from fiscal year 2016 for two compa nies competing in the cosmetics industry-The Este Lauder Companies and e.l.f Beauty Inc.-appears in the table below. All dollar values are in thousands. LG4 P3-21 Este Lauder e.l.f.Beauty Total assets Total liabilities EBIT Interest expense $9,223,300 5,636,000 1,625,900 70,700 $414,729 273,867 26,095 16,283 a. Calculate the debt ratio and the times interest earned ratio for each company. In in terms of their debt usage, and in what what way are these companies similar way are they very different? b. Calculate the ratio of interest expense to total liabilities for each company Conceptually, what do you think this ratio is trying to measure? Why are the values of this ratio dramatically different for these two firms? Suggest some reasons