EX 4-21 Working capital and current ratio
The following data (in thousands) were taken from recent financial statements of Under Armour, Inc.:
| December 31 | ||
| 2008 | 2007 | |
| Current assets | $396,423 | $322,245 |
| Current liabilities | 113,110 | 95,699 |
a. Compute the working capital and the current ratio as of December 31, 2008 and 2007. Round to two decimal places.
b. What conclusions concerning the company’s ability to meet its financial obligations can you draw from part (a)?
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