You are analyzing the capital structure of two manufacturing companies, ManufacturerX and IndustryY, to understand their debt levels.

Requirements:

1. ManufacturerX has total liabilities of $800 million and shareholders' equity of $1.2 billion as of December 31, 2023. IndustryY has total liabilities of $600 million and shareholders' equity of $1.5 billion on the same date.
2. Calculate the debt-to-equity ratio for both companies.
3. Discuss which company appears to rely more on debt financing relative to its equity.