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		$1,274,324		$1,252,608
Long-term debt		1,695,092		2,851,723
Other liabilities		539,086		469,669
	Total liabilities	$3,508,502		$4,574,000
Shareholders' equity:
	Common stock	$104,847		$441,369
	Additional paid in capital	1,275,059		1,812,682
	Retained earnings	4,184,374		1,629,257
	Accumulated other comprehensive loss and other equity items	(294,514)		(859,226)
Treasury stock, at cost		(3,515,280)		(2,354,617)
Total stockholders' equity		$1,754,486		$669,465
Total liabilities and stockholders' equity		$5,262,988		$5,243,465

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

	Hasbro		Mattel
Income (loss) from operations (before income tax expense)	$270,402		$(419,261)
Interest expense	90,826		181,886

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

Hasbro, Inc.	fill in the blank 1
Mattel, Inc.	fill in the blank 2

b. Determine the times interest earned ratio for both companies. Round your answers to one decimal place.

Hasbro, Inc.	fill in the blank 3
Mattel, Inc.	fill in the blank 4

c. Hasbro, Inc. provides ( Sound, or Weak) margin of safety to creditors. Earnings for Hasbro is (more than enough, not enough)

to make interest payments.