A manufacturing company has \$3,000,000 in liabilities and \$1,500,000 in equity. Calculate the debt to equity ratio and discuss its implications for the company's financial strategy.

2.0, indicating high reliance on debt requiring focus on managing interest expenses.

3.0, indicating low reliance on debt and conservative financing approach with equity focus.

1.0, indicating equal reliance on debt and equity for balanced capital structure approach.

0.5, indicating balanced approach to financing with minimal leverage risk and strong equity.