Financial Ratio Calculator
Analyze your company's financial health with 20+ key ratios. Enter your financial data below to calculate liquidity, profitability, efficiency, leverage, and valuation ratios.
📊 Balance Sheet Data
📈 Income Statement Data
💹 Market Data (Optional)
liquidity Ratios
Quick Health Check
20+ Key Financial Ratios in One Tool
Our comprehensive financial ratio calculator covers all five major categories used by CFOs, analysts, and investors worldwide.
Liquidity Ratios
Measure ability to meet short-term obligations
- Current Ratio
- Quick Ratio
- Cash Ratio
- Working Capital
Profitability Ratios
Assess ability to generate earnings
- Gross Margin
- Operating Margin
- Net Margin
- ROE
- ROA
Efficiency Ratios
Evaluate asset and resource utilization
- Asset Turnover
- Inventory Turnover
- Receivables Turnover
- Days Sales Outstanding
Leverage Ratios
Analyze debt levels and financial risk
- Debt-to-Equity
- Debt-to-Assets
- Interest Coverage
- Equity Ratio
Valuation Ratios
Determine market value and investment potential
- P/E Ratio
- P/B Ratio
- EPS
- Dividend Yield
Who Uses Financial Ratio Calculators?
CFOs & Controllers
Monitor company financial health, prepare board reports, and make strategic decisions based on key metrics.
Financial Analysts
Evaluate investment opportunities, compare companies, and build financial models for valuations.
Business Owners
Track profitability, manage cash flow, and understand how their business compares to industry benchmarks.
Accountants & Auditors
Analyze client financials, identify trends, and provide advisory services based on ratio analysis.
Financial Ratio Benchmarks by Industry
Compare your ratios with industry averages to understand where you stand.
| Industry | Current Ratio | D/E Ratio | Net Margin | ROE |
|---|---|---|---|---|
| Technology/SaaS | 2.5-3.5 | 0.2-0.5 | a significant amount | a significant amount |
| Retail | 1.5-2.0 | 0.8-1.5 | a significant amount | a significant amount |
| Manufacturing | 1.8-2.5 | 0.5-1.0 | a significant amount | a significant amount |
| Healthcare | 1.5-2.5 | 0.3-0.8 | a significant amount | a significant amount |
| Financial Services | 1.2-1.8 | 2.0-5.0 | a significant amount | a significant amount |
| Real Estate | 1.0-1.5 | 1.5-3.0 | a significant amount | a significant amount |
Key Financial Ratio Formulas
Current Ratio
Current Assets ÷ Current LiabilitiesExample: $500K ÷ $250K = 2.0
Quick Ratio
(Current Assets - Inventory) ÷ Current LiabilitiesExample: ($500K - $100K) ÷ $250K = 1.6
Debt to Equity
Total Liabilities ÷ Shareholder EquityExample: $400K ÷ $600K = 0.67
Return on Equity
Net Income ÷ Shareholder Equity × 100Example: $120K ÷ $600K × 100 = 20%
Net Profit Margin
Net Income ÷ Revenue × 100Example: $120K ÷ $1M × 100 = 12%
Asset Turnover
Revenue ÷ Total AssetsExample: $1M ÷ $800K = 1.25x
Complete Guide to Financial Ratio Analysis
What is Financial Ratio Analysis?
Financial ratio analysis is a method of evaluating a company's financial performance by comparing various line items from financial statements. These ratios provide insights into liquidity, profitability, operational efficiency, and solvency. Investors, creditors, and management use ratio analysis to make informed decisions.
Why Financial Ratios Matter
- Investors: Evaluate profitability and growth potential before investing
- Lenders: Assess ability to repay loans and credit risk
- Management: Monitor operational efficiency and make strategic decisions
- Competitors: Benchmark performance against industry peers
How to Use This Calculator
Enter your financial data from your balance sheet and income statement. The calculator instantly computes 20+ key ratios and compares them against industry benchmarks. Color-coded results help you quickly identify areas of strength and concern.
For valuation ratios, optionally enter market data like share price and shares outstanding. This is useful for publicly traded companies or private companies considering exit valuations.
Frequently Asked Questions
What are financial ratios?
Financial ratios are quantitative measures derived from financial statements that help evaluate a company's performance, financial health, and operational efficiency. They allow comparisons across time periods, between companies, and against industry benchmarks.
What is a good current ratio?
A good current ratio is typically between 1.5 and 3.0. This indicates the company has enough current assets to cover its short-term liabilities. Below 1.0 suggests potential liquidity issues, while above 3.0 might indicate inefficient asset utilization.
How do you calculate debt-to-equity ratio?
Debt-to-Equity Ratio = Total Liabilities ÷ Shareholder's Equity. A D/E ratio of 1.0 means the company uses equal amounts of debt and equity for financing. Lower ratios indicate less financial risk from debt, while higher ratios suggest more leverage.
What is Return on Equity (ROE)?
ROE measures how effectively a company generates profits from shareholder investments. Formula: Net Income ÷ Shareholder's Equity × 100. An ROE of a significant amount is generally considered good, with higher values indicating more efficient use of equity capital.
What's the difference between ROE and ROA?
ROE (Return on Equity) measures returns relative to shareholder investment only, while ROA (Return on Assets) measures returns relative to total assets (including debt-financed assets). ROE is typically higher than ROA when a company uses leverage.
Which financial ratios do banks look at for loans?
Banks primarily examine: Current Ratio (liquidity), Debt-to-Equity (leverage risk), Interest Coverage Ratio (ability to pay interest), and Debt Service Coverage Ratio (cash flow to cover debt payments). They want assurance that loans will be repaid.
What is the quick ratio vs current ratio?
Both measure liquidity, but the Quick Ratio excludes inventory from current assets, providing a more conservative measure. Quick Ratio = (Current Assets - Inventory) ÷ Current Liabilities. It shows ability to pay obligations without selling inventory.
What is a good profit margin by industry?
Profit margins vary significantly: Software/SaaS (a significant amount), Professional Services (a significant amount), Manufacturing (a significant amount), Retail (a significant amount), Restaurants (a significant amount). Always compare against direct industry competitors for meaningful benchmarks.
How often should I calculate financial ratios?
Monthly for operational monitoring, quarterly for trend analysis and board reporting, and annually for strategic planning. More frequent analysis helps catch issues early. Use consistent time periods for accurate comparisons.
Can I export the ratio analysis results?
While this calculator displays results on-screen, you can screenshot or note the values for reports. For detailed financial analysis, consider using our Bank Statement Converter to organize your transaction data for further analysis.
Need to Extract Data from Bank Statements?
Convert PDF bank statements to Excel/CSV with AI-powered accuracy. Works with any bank format, extracts transactions, balances, and account details automatically.