The Lockheed Martin Corp. and Northrop Grumman Corp. are two major defense contractors. A partial balance sheet for the end of a recent fiscal year is shown as follows (in millions):

The interest expense, income tax expense, and net income (before unusual items) were as follows for both companies:

1. Determine the total liabilities to total assets ratio for each company. Round to two decimal places.
2. Determine the number of times interest charges are earned for each company.
3. Interpret yourresults.

Lockheed Martin 12/31/04 Northrop Grumman 12/31/04 Liabilities and stockholders' equity Total current liabilities Long-term debt Post-retirement benefit liabilities Deferred income taxes Other non-current liabilities Total stockholders' equity Total liabilities and stockholders' equity 8,566 5,104 2,896 0 1,967 7,021 $25,554 6,223 5,116 3,736 506 1,080 16,700 533,361 Lockheed Martin 2004 Northrop Grumman 2004 431 522 1,093 Interest expense Income tax expense Net income from continuing operations 425 398 1,266