Suppose the following data were taken from the 2022 and 2021 financial statements of American Eagle Outfitters. (All numbers, including share data, are in thousands.)

	2022	2021
Current assets	$ 925,359	$1,020,834
Total assets	1,963,676	1,867,680
Current liabilities	401,763	376,178
Total liabilities	554,645	527,216
Net income	179,061	400,019

Instructions

Perform each of the following.

1. Calculate the current ratio for each year.
2. Calculate the debt to assets ratio for each year.
3. Discuss American Eagles solvency in 2022 versus 2021.