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		$3,553,000		$6,386,000
Long-term debt		1,912,900		2,534,000
Other liabilities		_		1,216,400
	Total liabilities	$5,465,900		$10,136,400
Shareholders' equity:
	Common stock	$338,000		$1,520,000
	Additional paid in capital	1,043,000		5,575,000
	Retained earnings	6,494,000		5,744,000
	Accumulated other comprehensive
	income (loss) and other equity items	75,000		(929,000)
Treasury stock, at cost		(2,981,000)		(3,463,000)
Total stockholders' equity		$4,969,000		$8,447,000
Total liabilities and stockholders' equity		$10,434,900		$18,583,400

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

	Hasbro		Mattel
Income (loss) from operations (before income tax expense)	$1,340,310		$2,984,900
Interest expense	103,900		314,200

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 a slightly

betterworse

margin of safety to creditors. Earnings for both companies appear

adequateinadequate

to make interest payments.

a. Determine the asset turnover for all three companies. 

Atlantic	fill in the blank 1
Pacific	fill in the blank 2
Mediterranean	fill in the blank 3

b. The ratio of sales to assets measures the number of sales dollars earned for each dollar of assets. The greater the number of sales dollars earned for every dollar of assets, the

more/less

efficient a firm is in using assets

Answer rating: 100% (QA)

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