Question
Debt ratio, Ratio of Liabilities to Stockholders' Equity, and Times Interest Earned Hasbro (HAS) and Mattel, Inc. (MAT), are the two largest toy companies in
Debt ratio, Ratio of Liabilities to Stockholders' Equity, and Times Interest Earned Hasbro (HAS) and Mattel, Inc. (MAT), are the two largest toy companies in North America. Liability and stockholders equity data from recent balance sheets are shown for each company below (in millions): Hasbro Mattel Current liabilities $ 1,065 $ 1,646 Long-term debt 1,952 2,274 Total liabilities $ 3,017 $ 3,920 Total stockholders' equity 1,704 2,633 Total liabilities and stockholders' equity $ 4,721 $ 6,553 The income from operations and interest expense from the income statement for both companies were as follows (in millions): Hasbro Mattel Income from operations before tax $604 $464 Interest expense 97 85 a. Determine the debt ratio for both companies. Round to one decimal place.
b. Determine the ratio of liabilities to stockholders equity for both companies. Round to one decimal place.
c. Determine the times interest earned for both companies. Round to one decimal place.
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