Working capital and current ratio OBJ.7
The following data (in thousands) were taken from recent financial statements of Under Armour, Inc.:
|
December 31 |
||
|
Year 2 |
Year 1 |
|
|
Current assets |
$555,850 |
$448,000 |
|
Current liabilities |
149,147 |
120,162 |
a. Compute the working capital and the current ratio as of December 31, Year 2 and Year 1. Round to two decimal places.
b. What conclusions concerning the company’s ability to meet its financial obligations can you draw from part (a)?