Hasbro (Has) and Mattel, inc. (Mat), are the two largest toy companies in North America. Liability and stockholders’ equity data from recent balance sheets are shown for each company below (in millions):

The income from operations and interest expense from the income statement for both companies were as follows (in millions):

a. Determine the debt ratio for both companies. Round to one decimal place.

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

c. Determine the times interest earned for both companies. Round to one decimal place.

d. Interpret the ratio differences between the two companies.

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Hasbro Mattel Current liabilities $ 1,252 $ 1,624 Long-term debt 2,208 3,357 Total liabilities $ 3,460 $ 4,981 Total stockholders' equity Total liabilities and stockholders' equity 1,830 1,257 $ 5,290 $ 6,238