Enter a few figures from your balance sheet and income statement to instantly calculate the most-used liquidity, profitability, leverage, and efficiency ratios, with plain-English interpretation.
| Ratio | Value | What it means |
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Ratios are calculated directly from the figures you enter. Interpretations are general guidance, not investment or accounting advice, always compare against your specific industry norms.
Show calculation steps
How to use the Financial Ratio Analyzer
- Pull current assets, current liabilities, total debt, total assets, equity, revenue, cost of goods sold, and net income from your latest balance sheet and income statement.
- Enter each figure in the matching field, using the same currency and period throughout.
- Click Calculate Ratios to see liquidity, leverage, and profitability ratios with a plain-English explanation of each.
- Compare your ratios against industry benchmarks or prior periods to spot trends.
Why financial ratios matter more than raw numbers
A single number like "net income of $90,000" tells you very little on its own. Ratios put that number in context, against assets, revenue, or equity, so you can compare a company to its own past performance or to competitors of any size. Investors, lenders, and auditors all rely on the same handful of ratios calculated here to judge liquidity, solvency, and profitability at a glance.
Example
Current assets of 500,000 against current liabilities of 300,000 gives a current ratio of 1.67, generally healthy. But if 120,000 of those current assets is slow-moving inventory, the quick ratio drops to about 1.27, still acceptable but worth watching if inventory turnover is slow.
Frequently asked questions
- What is a good current ratio?
- Between 1.5 and 3 is generally healthy; below 1 can signal short-term liquidity risk.
- What's the difference between the current ratio and the quick ratio?
- The quick ratio excludes inventory, giving a stricter view of near-term liquidity.
- Is a high debt-to-equity ratio always bad?
- Not necessarily, capital-intensive industries typically run higher ratios than others; compare against industry peers.
- Does this tool store or send my financial data anywhere?
- No, all calculations run locally in your browser.
Bookmark this page and re-run it each reporting period, tracking the same ratios quarter over quarter reveals trends a single snapshot never will.
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