Enter financial data
Provide the values you know. Ratios needing a zero denominator will display as N/A.
Example data table
This worked example shows a complete set of inputs and expected outputs.
| Metric | Example Value | Metric | Example Value |
|---|---|---|---|
| Current Assets | 150,000 | Current Ratio | 2.00 |
| Inventory | 35,000 | Quick Ratio | 1.53 |
| Cash and Equivalents | 25,000 | Cash Ratio | 0.33 |
| Current Liabilities | 75,000 | Debt-to-Equity Ratio | 0.67 |
| Total Debt | 120,000 | Debt Ratio | 0.40 |
| Total Equity | 180,000 | Gross Profit Margin | 38.10% |
| Total Assets | 300,000 | Net Profit Margin | 11.43% |
| Net Sales | 420,000 | Return on Assets | 16.84% |
| Cost of Goods Sold | 260,000 | Return on Equity | 27.43% |
| Net Income | 48,000 | Asset Turnover | 1.47 |
| Average Total Assets | 285,000 | Interest Coverage | 6.00 |
| Average Equity | 175,000 | Working Capital | 75,000 |
Formula used
- Current Ratio: Current Assets / Current Liabilities
- Quick Ratio: (Current Assets - Inventory) / Current Liabilities
- Cash Ratio: Cash and Equivalents / Current Liabilities
- Debt-to-Equity Ratio: Total Debt / Total Equity
- Debt Ratio: Total Debt / Total Assets
- Gross Profit Margin: ((Net Sales - Cost of Goods Sold) / Net Sales) × 100
- Net Profit Margin: (Net Income / Net Sales) × 100
- Return on Assets: (Net Income / Average Total Assets) × 100
- Return on Equity: (Net Income / Average Equity) × 100
- Asset Turnover: Net Sales / Average Total Assets
- Interest Coverage: Operating Income / Interest Expense
- Working Capital: Current Assets - Current Liabilities
How to use this calculator
- Enter available balance sheet and income statement values in the form.
- Use average assets and average equity for return ratios.
- Click Calculate Ratios to generate the result table.
- Review each value, formula, and interpretation for quick analysis.
- Download the results as CSV or PDF for reporting.
FAQs
1. What does a financial ratio calculator do?
It converts raw financial statement values into readable indicators. These indicators help compare liquidity, leverage, profitability, efficiency, and short-term funding strength more quickly.
2. Why are some results shown as N/A?
A result becomes N/A when its denominator is zero. For example, current liabilities of zero prevent liquidity ratios from being computed safely.
3. Should I use ending assets or average assets?
Average assets are better for return and turnover ratios because they represent the period more fairly. Ending balances can distort performance interpretation.
4. Is a higher current ratio always better?
Not always. Extremely high liquidity may signal idle assets or inefficient working capital use. Healthy ranges depend on industry and operating cycle.
5. What does a high debt-to-equity ratio mean?
It usually means the company relies more on borrowed funds than owner capital. That can amplify returns, but it also increases financial risk.
6. Why compare both gross margin and net margin?
Gross margin focuses on production efficiency, while net margin shows final profitability after operating, financing, and other costs. Together they reveal where earnings change.
7. Can this calculator help with lending or investment review?
Yes. Ratio summaries support credit review, valuation screening, trend analysis, and management discussions. They should still be combined with qualitative judgment.
8. How often should financial ratios be reviewed?
Quarterly review is common, but monthly tracking helps faster decision-making. Fast-growing or highly leveraged businesses often benefit from more frequent checks.