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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
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): Hasbro Mattel Liabilities: Current liabilities $1,617,859 $1,505,573 Long-term debt 1,588,067 2,580,439 Total liabilities $3,205,926 $4,086,012 $1,862,736 $2,407,782 Total stockholders' equity Total liabilities and stockholders' equity $5,068,662 $6,493,794 The operating income and interest expense from the income statement for each company were as follows (in thousands): Hasbro Mattel Operating income (before income tax expense) Interest expense $692,489 97,405 $409,472 95,118 a. Determine the ratio of liabilities to stockholders' equity for both companies. Round to one decimal place. Hasbro Inc. Mattel Inc. b. Determine the times interest earned ratio for both companies. Round to one decimal place. Hasbro Inc. Mattel Inc
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