Financial Ratio Calculator
Key liquidity, leverage and profitability ratios.
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This financial ratio calculator turns a few numbers from the balance sheet and income statement into ten key ratios. It covers liquidity (current, quick and cash ratios), leverage (debt-to-equity and debt ratio), profitability (return on equity, return on assets and net margin), efficiency (asset turnover) and interest coverage, with typical ranges to help you read them.
What is a Financial Ratio Calculator?
Financial ratios compare numbers from a company’s financial statements to reveal how healthy it is. Liquidity ratios show whether it can pay short-term bills, leverage ratios show how much it relies on debt, profitability ratios show how well it turns sales and capital into profit, and coverage ratios show how easily it can pay interest.
Lenders, investors and owners use ratios to compare a business with its own past and with peers. This financial ratio calculator produces ten of the most common ratios from a handful of inputs and shows a typical range for each.
How does the Financial Ratio Calculator work?
Each ratio divides one figure by another: current assets by current liabilities for the current ratio, current assets minus inventory for the quick ratio, total debt by equity for debt-to-equity, net income by equity for ROE, net income by total assets for ROA, revenue by total assets for asset turnover and EBIT by interest for interest coverage.
How to use the Financial Ratio Calculator step by step
- Choose your currency.
- Enter current assets, current liabilities, inventory and cash.
- Enter total assets, debt and equity.
- Enter revenue and net income.
- Optionally add EBIT and interest.
- Read the ratios and ranges.
Financial Ratio Calculator example with real numbers
A distributor has $500,000 of current assets (including $150,000 of inventory and $100,000 of cash), $300,000 of current liabilities, $1.2 million of total assets, $400,000 of debt and $600,000 of equity. Last year it earned $120,000 on $1.5 million of revenue.
| Example input | Value |
|---|---|
| Currency | US dollar ($) |
| Current assets | 500,000 |
| Current liabilities | 300,000 |
| Inventory | 150,000 |
| Cash and equivalents | 100,000 |
| Total assets | 1,200,000 |
| Total debt (loans and borrowings) | 400,000 |
| Shareholders' equity | 600,000 |
| Revenue | 1,500,000 |
| Net income | 120,000 |
| EBIT (optional) | 180,000 |
| Interest expense (optional) | 30,000 |
| Example output | Value |
|---|---|
| Current ratio | 1.67× |
| Quick ratio | 1.17× |
| Debt-to-equity | 0.67× |
| Return on equity | 20.0% |
| Return on assets | 10.0% |
| Net margin | 8.0% |
| Interest coverage | 6.00× |
The financial ratio calculator shows a current ratio of 1.67×, a quick ratio of 1.17×, debt-to-equity of 0.67× and return on equity of 20.0%.
Key features of this Financial Ratio Calculator
- Ten key ratios
- Typical ranges
- Liquidity, leverage, profitability, efficiency
- Negative equity handling
- 8 currencies
Who should use the Financial Ratio Calculator?
Who is this Financial Ratio Calculator for?
- Small business owners
- Bank credit officers
- Accounting and MBA students
- Equity investors
Practical use cases
- Preparing a loan application
- Annual business health check
- Comparing with competitors
- Exam and assignment practice
Key benefits
- Complete: ten ratios at once.
- Readable: typical ranges.
- Fast: minimal inputs.
- Private: runs in your browser.
Tips for better results
- Compare ratios over several years, not one.
- Benchmark against your industry.
- Use average balances for return ratios when possible.
- Look at cash flow alongside ratios.
Common mistakes to avoid
- Comparing ratios across unrelated industries.
- Mixing year-end and average figures.
- Ignoring off-balance-sheet debt.
- Treating typical ranges as strict rules.
Limitations of this Financial Ratio Calculator
- Typical ranges are general guides.
- Based on the figures you enter only.
- Does not adjust for seasonality or one-off items.
Financial Ratio Calculator vs other ways to calculate
| Group | Ratios |
|---|---|
| Liquidity | Current, quick, cash |
| Leverage | Debt-to-equity, debt ratio |
| Profitability | ROE, ROA, net margin |
| Efficiency and coverage | Asset turnover, interest coverage |
For profit layers, use the EBITDA calculator. For the cash cycle, try the working capital calculator.
Privacy and data handling
This Financial Ratio Calculator runs entirely in your browser. The numbers you type are not sent to Qorico or stored on any server, and nothing is saved after you close the page. The Copy and Download buttons create the result on your own device. If the page has analytics turned on, it may count that a calculation happened, but it does not record the values you entered.
Financial Ratio Calculator FAQs
What is a good current ratio?
Often 1.2 to 2.0; below 1 can mean trouble paying short-term bills.
What is the difference between current and quick ratio?
The quick ratio leaves out inventory, which can be hard to sell quickly.
What is a good debt-to-equity ratio?
Often below 1 to 2, but capital-intensive industries carry more debt.
How is ROE calculated?
Net income divided by shareholders’ equity.
What is interest coverage?
EBIT divided by interest expense; 3 or more is usually comfortable.
Where do I find these numbers?
In the balance sheet and income statement of the annual accounts.
Related tools
Sources and references
We checked the method and the current figures used in this Financial Ratio Calculator against these official and primary sources:
- SEC EDGAR: Company filings
- ICAI: Institute of Chartered Accountants of India
- SBA: Manage your business (finances)
- CFA Institute
Written and reviewed by the Qorico Team
