Financial Ratios Calculator
Calculate key profitability, liquidity, debt, or efficiency ratios from financial statement inputs, with benchmark interpretation for each ratio.
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How to use this calculator
- 1
Select a ratio category: profitability, liquidity, debt, or efficiency.
- 2
Enter the relevant financial figures from the income statement and balance sheet.
- 3
Review the calculated ratios alongside their benchmark interpretations.
- 4
Compare ratios year-over-year or against industry peers for meaningful analysis.
Frequently asked questions
Which profitability formulas does this tool use?
Gross Profit Margin = Gross Profit ÷ Revenue, Operating Profit Margin = Operating Income (EBIT) ÷ Revenue, Net Profit Margin = Net Income ÷ Revenue, Return on Assets (ROA) = Net Income ÷ Total Assets, and Return on Equity (ROE) = Net Income ÷ Total Shareholders Equity. Balance sheet figures are used as entered, not averaged.
Which liquidity formulas does it use?
Current Ratio = Current Assets ÷ Current Liabilities. Quick Ratio (Acid Test) = (Current Assets − Inventory) ÷ Current Liabilities. Cash Ratio = Cash ÷ Current Liabilities. Working Capital = Current Assets − Current Liabilities.
Which debt formulas does it use?
Debt-to-Equity Ratio = Total Debt ÷ Total Equity, Debt Ratio = Total Liabilities ÷ Total Assets, Interest Coverage (EBITDA/Interest) = EBITDA ÷ Interest Expense, and Debt/EBITDA = Total Debt ÷ EBITDA. Note that coverage uses EBITDA, not EBIT.
Which efficiency formulas does it use?
Asset Turnover = Revenue ÷ Total Assets. Inventory Turnover = COGS ÷ Average Inventory, and Days Sales in Inventory = 365 ÷ Inventory Turnover. Receivables Turnover = Revenue ÷ Average Accounts Receivable, and Days Sales Outstanding (DSO) = 365 ÷ Receivables Turnover.
When does a ratio show n/a?
Whenever its denominator is zero. In addition, Debt-to-Equity and the Solvency Assessment show n/a when equity is zero or negative, and Debt/EBITDA shows n/a when EBITDA is zero or negative. Interest Coverage is n/a when interest expense is zero, and the days measures are n/a when their turnover is zero.
What are the bracketed guides on each ratio?
They are the figures built into this tool, such as ">15% good" beside Operating Profit Margin. They are fixed text and not drawn from any industry data, so what counts as acceptable varies between businesses. Compare your ratios with peers or your own history instead.
Do the other categories’ inputs matter?
No. Only the fields used by the selected Ratio Category enter the calculation. The form shows all the fields, but changing a liquidity input has no effect on the profitability results.
What does it not do?
It does not read financial statements, compute averages for you, use market values such as enterprise value, or compare periods. It gives one ratio set per run, from the numbers you enter.
Financial ratios from statement figures: four categories
Profitability: margins and returns
Three margins divide a profit line by revenue, and two returns divide net income by assets or equity. With the figures built into this tool (revenue 500,000, gross profit 200,000, operating income 80,000, net income 50,000, assets 400,000, equity 200,000) the results are a gross margin of 40.00%, an operating margin of 16.00%, a net margin of 10.00%, ROA of 12.50% and ROE of 25.00%. Replace them with revenue 800,000, gross profit 240,000, operating income 64,000, net income 36,000, assets 620,000 and equity 310,000, and the same ratios become 30.00%, 8.00%, 4.50%, 5.81% and 11.61%.
Liquidity: can short-term obligations be met?
The current ratio is the broadest test, the quick ratio takes inventory out of current assets, and the cash ratio counts only cash. The table shows the built-in figures against a stressed set where current assets of 90,000 face liabilities of 120,000, inventory is 55,000 and cash is 8,000. The stressed case turns working capital negative and falls in the lowest band of the Current Ratio Band.
| Measure | Built-in figures | Stressed case |
|---|---|---|
| Current Ratio | 2.00 | 0.75 |
| Quick Ratio (Acid Test) | 1.50 | 0.29 |
| Cash Ratio | 0.33 | 0.07 |
| Working Capital | $60,000.00 | −$30,000.00 |
| Current Ratio Band (built-in) | Excellent (≥2.0) | Concern (<1.0) |
Debt and solvency
Leverage is measured four ways. Debt-to-Equity compares debt with owners’ funds, the Debt Ratio compares liabilities with assets, Interest Coverage (EBITDA/Interest) shows how many times earnings before depreciation cover interest, and Debt/EBITDA expresses debt in years of EBITDA. The built-in figures give 1.00, 0.50, 10.00 and 2.00×, with a Moderate Solvency Assessment. Debt of 450,000 against equity of 150,000, liabilities of 520,000, assets of 700,000, EBITDA of 90,000 and interest of 30,000 gives 3.00, 0.74, 3.00 and 5.00×, flagged High Leverage.
Efficiency: turning assets into sales
Turnover ratios show how many times a balance is converted into revenue or cost of sales during the year, and the days measures convert that count into days using 365. The built-in figures give an asset turnover of 1.25×, inventory turnover of 8.57×, 42.58 days of inventory, receivables turnover of 10.00× and DSO of 36.50 days. With revenue of 1,200,000, COGS of 780,000, average inventory of 65,000, average receivables of 150,000 and assets of 900,000, you get 1.33×, 12.00×, 30.42 days, 8.00× and 45.63 days.
Reading ratios responsibly
A ratio is only as good as the figures behind it, and these are single-period snapshots with no trend. The built-in guide text is a fixed reference and not an industry benchmark. Zero or negative denominators produce n/a instead of Infinity, so a missing figure is visible. Use the results to ask questions about a business, not to settle them.
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Results are estimates for informational purposes only and do not constitute professional financial, medical, legal, or technical advice. Read full disclaimer →