Chapter 14, Problem 14.15EX

Ratio of liabilities to stockholders' equity and ratio of fixed assets to long-term liabilities

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

	Mondelez	Hershey
Net property, plant, and equipment	$10,010,000	$1,674,071
Current liabilities	14,373,000	1,471,110
Long-term debt	15,574,000	1,530,967
Other long-term liabilities	12,816,000	716,013
Stockholders’ equity	32,215,000	1,036,749

• 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.