... Current liabilities 269, 700 The current ratio shows that Philips posses £2 of current assets for each £1 of current liabilities. In this circumstance Philips will be able meet its current liabilities without needing to sell fixed assets or raise long-term finance. A typical figure is around 1.6:1 and therefore it can be said that Philips have a relatively good current ratio. However in spite of this, the normal figure varies according to the type of business, an electrical firm like Philips may have a different ratio to a retailer. As Philips is a large manufacturing company they are quite liquid and will be able to borrow loans and aid the console. Philips ratio has decreased from 2001 by 0.48 to 2002, this could have been due to Philips struggling in the market or paying off loans. This comparison shows that the ratio from 2001 to 2002 has decreased dramatically, however ...

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