Financial Ratio Calculator

Calculate key financial ratios (liquidity, profitability, efficiency) for business analysis.

The Financial Ratio Calculator instantly computes essential ratios—like Current Ratio, Gross Profit Margin, and Debt-to-Equity—to provide a quick analysis of a company's financial health. Calculate financial ratios now!

Input Financial Data

Revenue ($)

Total Costs ($)

Total Assets ($)

Total Liabilities ($)

Shareholder Equity ($)

Current Assets ($)

Current Liabilities ($)

Inventory ($)

Profitability Ratios

Profit Margin

Formula: (Revenue - Costs) / Revenue × 100

Gross Profit Margin

Formula: (Revenue - Costs) / Revenue × 100

Return on Equity (ROE)

Formula: (Revenue - Costs) / Equity × 100

Return on Assets (ROA)

Formula: (Revenue - Costs) / Total Assets × 100

Liquidity Ratios

Current Ratio

Formula: Current Assets / Current Liabilities

Quick Ratio

Formula: (Current Assets - Inventory) / Current Liabilities

Cash Ratio

Formula: (Current Assets - Inventory) / Current Liabilities

Working Capital

Formula: Current Assets - Current Liabilities

Leverage Ratios

Debt-to-Equity

Formula: Total Liabilities / Shareholder Equity

Debt Ratio

Formula: (Total Liabilities / Total Assets) × 100

Equity Multiplier

Formula: Total Assets / Shareholder Equity

Efficiency Ratios

Asset Turnover

Formula: Revenue / Total Assets

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How to Use

Step-by-step guide 3 steps

1 Input Financial Data: Enter the required metrics (e.g., Current Assets, Total Debt, Net Income).
2 Select Ratio: Choose the ratio you want to analyze (e.g., Current Ratio, Debt-to-Equity).
3 Compute: Click "Calculate Ratio" to instantly receive the result and its interpretation. Calculate financial ratios now!

FAQ

Common questions 3 questions

What is a good Current Ratio?

A ratio of 2:1 is generally considered healthy, but it varies by industry.

Can this be used for public companies?

Yes, you can input the data found in a company's financial statements for quick analysis.

Why are financial ratios important?

They provide a standardized way to compare a company's financial health and performance against industry benchmarks.

Use Cases & Examples

Real-world applications 3 examples

Investment Analysis

Calculate the P/E Ratio (Price-to-Earnings) to quickly determine if a stock is undervalued or overvalued.

Business Health

Monitor liquidity by calculating the Current Ratio monthly to ensure the company can meet short-term obligations.

Benchmarking

Compare your company's Gross Profit Margin against competitors in the same industry.