Hasbro and Mattel, Inc., 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):

		Hasbro		Mattel
Current liabilities		$960,435		$1,716,012
Long-term debt		1,396,421		1,100,000
Deferred liabilities		461,152		643,729
	Total liabilities	$2,818,008		$3,459,741
Shareholders' equity:
	Common stock	$104,847		$441,369
	Additional paid in capital	655,943		1,727,682
	Retained earnings	3,354,545		3,515,181
	Accumulated other comprehensive loss and other equity items	(72,307)		(464,486)
Treasury stock, at cost		(2,535,649)		(2,152,702)
Total stockholders' equity		$1,507,379		$3,067,044
Total liabilities and stockholders' equity		$4,325,387		$6,526,785

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

	Hasbro		Mattel
Income from operations (before income tax)	$453,402		$945,045
Interest expense	117,403		88,835

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

Hasbro Inc.
Mattel Inc.

b. Determine the number of times interest charges are earned for both companies. Round to one decimal place.

Hasbro Inc.
Mattel Inc.

c. Together, these ratios indicate that earnings are to make interest payments. With that said, Mattel does provide creditors with a margin of safety than Hasbro.