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Solvency ratios are designed to measure the company’s level of financial risk. Evaluating the debt to assets ratio for Target Co. and Wal-Mart, I concluded that the higher level of financial risk has Target Co. The debt to assets for Target Co. is higher with 9.71% than for Wal-Mart, which is considered riskier to invest or loan to because it is more leveraged. This means that Target Co. will have to pay a greater percentage of its profit for principal and interest payments. The plant assets to long-term liabilities ratio shows also that Target Co has a higher financial risk. This ratio is lower for Target Co. than for Wal-Mart, this means Target’s long-lived assets are less financed with its long-term liabilities than