Hasbro and Mattel, Inc ratio of liabilities to stockholders' equity

Hasbro 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):

HasbroMattel
Current liabilities$960,435$1,716,012
Long-term debt1,396,4211,100,000
Deferred liabilities461,152643,729
Total liabilities$2,818,008$3,459,741
Shareholders’ equity:
Common stock$104,847$441,369
Additional paid in capital655,9431,727,682
Retained earnings3,354,5453,515,181
Accumulated other comprehensive loss and other equity items(72,307)(464,486)
Treasury stock, at cost(2,535,649)(2,152,702)
Total stockholders’ equity$1,507,379$3,067,044
Total liabilities and stockholders’ equity$4,325,387$6,526,785

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

HasbroMattel
Income from operations (before income tax)$453,402$945,045
Interest expense117,40388,835

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

Hasbro Inc.
Mattel Inc.

b.  Determine the number of times interest charges are earned for both companies. Round to one decimal place.

Hasbro Inc.
Mattel Inc.
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