Nokia Oyj (NOK) Balance Sheet

The balance sheet has shown remarkable stability, with total assets ranging from $36.0B to $39.7B and equity consistently above $19.6B. This stability suggests that the company is not undergoing significant expansion or contraction, but rather maintaining a steady state. The slight decline in assets from $39.7B in Q1 2024 to $37.3B in Q2 2026 may indicate a modest deleveraging or asset optimization, but the overall trend is one of consistency.

The D/E ratio has been consistently low, ranging from 0.16 to 0.25, which is conservative compared to peers like Ericsson (0.42) and Cisco (0.60). The recent reduction in total debt from $5.2B in Q4 2025 to $3.4B in Q2 2026, coupled with a stable equity base, suggests a deliberate effort to deleverage. This low leverage provides financial flexibility and reduces refinancing risk, though the reasons for the debt reduction are not disclosed.

Nokia's asset base is dominated by intangibles, with goodwill at $6.1B and PPE at just $2.6B, reflecting a business model that relies more on intellectual property and technology than physical assets. The goodwill has increased from $5.4B in Q3 2024 to $6.1B in Q2 2026, suggesting recent acquisitions. This raises the risk of future impairment if the acquired businesses underperform, which investors should monitor.

Equity has remained stable around $21B, with retained earnings showing a slight decline from $2.0B in Q4 2024 to $1.6B in Q2 2026. This decline, despite positive net income in most quarters, suggests that dividends and other distributions are consuming a significant portion of earnings. The company has paid cumulative dividends exceeding $1.8B over ten quarters, which may limit equity growth but also signals a commitment to shareholder returns.

The current ratio has been consistently above 1.3, with a recent uptick to 1.51, suggesting that current assets comfortably cover current liabilities. Cash has declined from $6.6B in Q4 2024 to $4.3B in Q2 2026, but remains substantial relative to total debt of $3.4B. This provides a buffer against operational shocks, though the declining cash trend warrants monitoring.