Financial Ratio Calculator

The current ratio asks whether you could cover the next year of obligations from assets you could realistically convert to cash; above 2 is comfortable and below 1 means short-term liabilities exceed short-term assets. The quick ratio asks the same question but excludes inventory, which matters because unsold stock is not cash and may never become cash at full value. Debt-to-equity shows how much of the business is funded by lenders rather than owners — higher leverage magnifies returns in good years and losses in bad ones. ROE is the headline investors watch, but read it alongside debt-to-equity, because a company can lift ROE simply by borrowing more rather than by operating better.

Current ratio = current assets ÷ current liabilities. Quick ratio removes inventory from the numerator. Debt-to-equity = total liabilities ÷ equity. Net margin = net income ÷ revenue. ROA = net income ÷ total assets, and ROE = net income ÷ equity, both expressed as percentages.

Ratios are only as good as the figures you enter and describe a single point in time, so a company can look healthy the day before a large payment falls due. The readings use common rules of thumb that vary enormously by industry — a supermarket and a software firm have almost opposite healthy profiles. Accounting policy differences also distort comparisons between companies, and no ratio captures cash-flow timing, which is what actually causes businesses to fail.

With 250,000 current assets, 120,000 current liabilities, 260,000 total liabilities, 340,000 equity, 900,000 revenue and 96,000 net income, the current ratio is 2.08, debt-to-equity is 0.76, net margin is 10.7% and ROE is 28.2%.

1. Take the figures from your balance sheet and income statement.
2. Fill in as many fields as you have; blanks are simply skipped.
3. Read the four grouped tables of ratios.
4. Compare against your own previous period rather than a universal benchmark.

• Comparing ratios across industries with very different economics.
• Including long-term liabilities in the current ratio.
• Reading a high ROE as strength when it is driven purely by heavy borrowing.
• Treating a single snapshot as a trend.

The Financial Ratio Calculator turns a handful of figures from your balance sheet and income statement into the twelve ratios analysts actually use: liquidity (current, quick, working capital), leverage (debt-to-equity, debt and equity ratios), profitability (gross and net margin, ROA, ROE) and efficiency (asset and inventory turnover).

Small business owners, accounting students, investors screening companies and anyone preparing for a lender or investor conversation.

• Twelve ratios in one pass, grouped the way analysts read them.
• Fill in only what you have — each ratio computes independently.
• Plain-English readings alongside the numbers, not just raw figures.
• Exports the whole set as CSV for a report or coursework.

• Checking whether your business can cover its short-term obligations.
• Preparing ratio analysis for a loan or investor application.
• Comparing this year against last year.
• Working through an accounting assignment.