Debt ratios measure the proportion of total assets financed by a firm$$s creditors.

Weghorst Co$.$ has a debt$-$to$-$equity ratio of $3\mathrm{.}80,$ compared to the industry average of $3\mathrm{.}04.$ Its competitor Bellywood Co$.,$ however, has a debt$-$to$-$equity ratio of $5\mathrm{.}70.$ Based on what debt$-$to$-$equity ratios imply, which of the following statements is true?