Determine the ratio of liabilities to stockholders equity

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Problem - Recent balance sheet information for two companies in the food industry, Mondelez International, Inc. (MDLZ), and The Hershey Company (HSY), is as follows (in thousands):

 

Mondelez

Hershey

Net property, plant, and equipment

$8,229,000

$2,177,248

Current liabilities

14,417,000

1,909,443

Long-term debt

13,217,000

2,347,455

Other long-term liabilities

8,689,000

439,748

Stockholders' equity

25,215,000

827,687

Required -

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

b. Determine the ratio of fixed assets to long-term liabilities for both companies. Round to one decimal place.

c. Interpret the ratio differences between the two companies.

Reference no: EM132719566

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