Ratio of Liabilities to Stockholders' Equity and Times Interest Earned

Hasbro, Inc. 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
Liabilities:
Current liabilities		$1,064,647		$1,645,572
Long-term debt		1,547,115		1,800,000
Other liabilities		404,883		473,863
	Total liabilities	$3,016,645		$3,919,435
Shareholders' equity:
	Common stock	$104,847		$441,369
	Additional paid in capital	893,630		1,789,870
	Retained earnings	3,852,321		3,745,815
	Accumulated other comprehensive loss and other equity items	(146,001)		(848,899)
Treasury stock, at cost		(3,040,895)		(2,494,901)
Total stockholders' equity		$1,663,902		$2,633,254
Total liabilities and stockholders' equity		$4,680,547		$6,522,689

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)	$603,915		$463,915
Interest expense	97,122		85,270

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.