Financial Ratios Calculator

Evaluate your company's financial health by computing essential financial ratios. From liquidity and solvency to profitability and efficiency, these ratios provide insights that help investors, managers, and analysts make informed decisions.

Enter your financial data to instantly calculate ratios used in balance sheet analysis, income statement evaluation, and investment screening.

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Secure & Private

Current Assets ($)

Inventory ($)

Current Liabilities ($)

Total Debt ($)

Shareholders' Equity ($)

EBIT ($)

Interest Expense ($)

Understanding This Calculator

Key Financial Ratios Explained

Financial ratios convert raw accounting data into meaningful metrics for comparison and analysis.

Liquidity Ratios

Current Ratio = Current Assets ÷ Current Liabilities — measures ability to pay short-term obligations. A ratio above 1.0 indicates sufficient short-term assets.
Quick Ratio = (Current Assets − Inventory) ÷ Current Liabilities — a stricter test that excludes inventory.

Profitability Ratios

Gross Margin = (Revenue − COGS) ÷ Revenue × 100
Net Margin = Net Income ÷ Revenue × 100
Return on Equity (ROE) = Net Income ÷ Shareholders' Equity × 100

Solvency Ratios

Debt-to-Equity = Total Debt ÷ Shareholders' Equity — indicates how much the company relies on debt financing.

Interpreting Ratios

Ratios should always be compared against industry benchmarks and historical trends. A current ratio of 1.5 might be healthy in one industry but weak in another.

How to Use

Enter your company's financial data from the balance sheet and income statement.
Select which ratio category you want to analyze (liquidity, profitability, or solvency).
Click Calculate to see your financial ratios with interpretation.

Frequently Asked Questions

What is a good current ratio?

A current ratio between 1.5 and 3.0 is generally considered healthy. Below 1.0 may indicate the company cannot pay its short-term debts. Above 3.0 might suggest the company is not efficiently using its assets.

What does a high debt-to-equity ratio mean?

A high debt-to-equity ratio (above 2.0) means the company is heavily financed by debt. This increases financial risk but can also amplify returns during good times. Capital-intensive industries like utilities typically have higher ratios.

How is ROE different from ROA?

ROE (Return on Equity) measures profit relative to shareholders' investment, while ROA (Return on Assets) measures profit relative to total assets. ROE can be inflated by high debt levels, making ROA a more conservative measure of profitability.

Which financial ratios do investors care about most?

Most investors focus on ROE, price-to-earnings (P/E), debt-to-equity, and profit margins. Growth investors may also prioritize revenue growth rate and earnings growth rate.

Can I compare ratios across different industries?

Financial ratios should primarily be compared within the same industry. Technology companies typically have different ratio profiles than manufacturing or retail companies due to different capital structures and business models.