Comment on current ratio


Response to the following problem:

Nokia is a leading global manufacturer of mobile devices and services. The following selected information is available from Nokia's financial statements.

(Euro millions)                                                                   Current Year                                       Prior Year

Current assets                                                                   23,613                                                  24,470

Current liabilities                                                              15,188                                                  20,355

Required

1. Compute Nokia's current ratio for both the current year and the prior year.

2. Comment on any change from the prior year to the current year for the current ratio.

 

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Financial Accounting: Comment on current ratio
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