Heally Corp is much riskier than Shoe Barn Inc. as it has a higher debt to equity ratio. It shows that investors have not funded the business as much as creditors have.
The market debt ratio increases when the stock price fall by 10% and increases the risk of insolvency.
It is calculated as:
EBITDA+Lease payment/Interest payment+Lease payment
=550+25/55+25= 575/80= 7.19 times.
I hope that was helpful :)
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