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):

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

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

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

c. Interpret the ratio differences between the two companies.

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Hasbro Mattel Liabilities: Current liabilities Long-term debt Other liabilities $ 1,274,324 $ 1,252,608 1,695,092 2,851,723 539,086 469,669 Total liabilities $ 3,508,502 $ 4.574.000 Stockholders'equity: Common stock $ 104,847 S 441,369 Additional pald-in capital Retained earnings Accumulated other comprehensive loss and other equity items Treasury stock, at cost Total stockholders'equity Total lilabilities and stockholders'equity 1,275,059 1,812,682 4,184,374 (294,514) (3.515.280) (2.354,617) $ 1,754,486 $5.262,988 1,629,257 (859,226) $ 669,465 $5.243,465