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Which company creditors are more at risk and why

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Reference no: EM132797451

Company G has a ratio of liabilities to stockholders' equity of 0.12 and 0.28 for Year 1 and Year 2, respectively. In contrast, Company M has a ratio of liabilities to stockholders' equity of 1.13 and 1.29 for the same period.

?problem 1: Based on this information, which company's creditors are more at risk and why? Should the creditors of either company fear the risk of nonpayment?

Reference no: EM132797451

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