a. Assess the financial strength of the company.

b. How is the financial strength likely to change in the next year or so?

c. What are its sources of capital and what is the value of the company 's capital?

a. Financial strength assessment

Financial strength is the result that company uses financial resources to carry out investing activities, and embodies the value of the enterprise’s financial management capabilities, which mainly includes solvency, profitability, operation efficiency and market value measures.

●Solvency

1) Short-term solvency or liquidity ratios, which measure the company 's ability to meet its short-term obligations.

a. Current Ratio (calculated as current assets divided by current liabilities)

Date Nokia Corp. Industry, Technology

Dec 31, 2011 1.46 1.73

Dec 31, 2010 1.55 1.67

Nokia Corp. 's current ratio deteriorated from 2010 to 2011.

b. Quick Ratio (calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities)

Dec 31, 2011 1.07 1.38

Dec 31, 2010 1.16 1.34

Nokia Corp. 's quick ratio deteriorated significantly from 2010 to 2011.

c. Cash Ratio (calculated as (cash plus short-term marketable investments) divided by current liabilities)

Dec 31, 2011 0.65 0.88

Dec 31, 2010 0.72 0.84

Nokia Corp. 's cash ratio slightly deteriorated from 2010 to 2011.

2) Long-term solvency ratios, which measure the company 's ability to meet its long-term obligations.

a. Total Debt Ratio (calculated as (total assets minus total equity) divided by total assets)

Dec 31, 2011 0.62 -

Dec 31, 2010 0.59 -

Nokia Corp. 's total debt ratio slightly deteriorated from 2010 to 2011.

b. Debt - Equity Ratio (calculated as total debt divided by total shareholders ' equity)

Dec 31, 2011 0.45 0.37

Dec 31, 2010 0.37 0.30

Nokia Corp. 's debt - equity ratio deteriorated significantly from 2010 to 2011.

c. Interest Coverage Ratio (calculated as EBIT