The following total liabilities and stockholders’ equity information (in millions) is provided for The Wendy’s Company (WEN) and Chipotle Mexican Grill, Inc. (CMG) at the end of a recent year:

Wendy’s is a much larger company than is Chipotle; however, both companies compete in the fast food business.
a. Compute the ratio of liabilities to stockholders’ equity for each company. Round to one decimal place.
b. What conclusion regarding the margin of protection to creditors can you draw for Wendy’s?
c. What conclusions regarding the use of debt can you draw for Chipotle?

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Wendy's Chipotle Total assets $4,292 $2,265 Total liabilities 3,644 824 Total stockholders'equity 648 1,441