Homework: Homework 2 Save Score: 0 of 1 pt 4 of 10 (5 complete) HW Score: 37.11%, 3.71 of 10 pts P3-21 (similar to) Analysis of debt ratios Financial information from fiscal year 2016 for two companies competing in the cosmetics industry The Estee Lauder Company and e.l.f. Beauty Inc.-appears in the table below. All dollar values are in thousands Total assets Total liabilities EBIT Interest expense Estee Lauder $9,223,200 5,636,000 1,625,800 70,800 e.l.f. Beauty $414.629 274.067 26.095 16,283 a. The debt ratio for Estee Lauder is (Round to three decimal places.) Enter your answer in the answer box and then click Check Answer. ? parts remaining Clear All Check Answer a. Calculate the debt ratio and the times interest earned ratio for each company. In what way are these companies similar in terms of their debt usage, and in what 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