Finance & investing / Analysis
Financial Ratio Calculator: Liquidity, Leverage, Margins, ROE
Enter figures from a balance sheet and an income statement to get the current, quick, and cash ratios, debt to equity, debt ratio, interest coverage, gross, operating, and net margins, return on assets and equity, and asset turnover, each with its formula.
Financial Ratio Calculator: Liquidity, Leverage, Margins, ROE: Each ratio divides one figure by another: with 500 of current assets and 250 of current liabilities, the current ratio is 2.0, and taking out 150 of inventory gives a quick ratio of 1.4. 180 of net income on 2,000 of revenue is a 9% net margin, and on 500 of equity a 36% return on equity. Runs 100% locally in your browser with zero server file uploads.
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| Group | Ratio | Value | Formula |
|---|---|---|---|
| Liquidity | Current ratio | 2 | current assets ÷ current liabilities |
| Liquidity | Quick ratio | 1.4 | (current assets − inventory) ÷ current liabilities |
| Liquidity | Cash ratio | 0.4 | cash ÷ current liabilities |
| Leverage | Debt to equity | 1.4 | total liabilities ÷ equity |
| Leverage | Debt ratio | 58.3% | total liabilities ÷ total assets |
| Leverage | Interest coverage | 6 | operating income ÷ interest expense |
| Profitability | Gross margin | 40% | gross profit ÷ revenue |
| Profitability | Operating margin | 15% | operating income ÷ revenue |
| Profitability | Net margin | 9% | net income ÷ revenue |
| Profitability | Return on assets | 15% | net income ÷ total assets |
| Profitability | Return on equity | 36% | net income ÷ equity |
| Efficiency | Asset turnover | 1.67 | revenue ÷ total assets |
Enter figures from the same period and in the same currency: balance sheet items at the end of the period, income statement items for the whole year. A current ratio above 1 means short-term assets cover short-term debts; what counts as healthy for each ratio depends heavily on the industry, so compare with similar companies and with the same company over time. Ratios with a zero below the line show a dash.
Reading ratios
A single ratio says little: compare it with the same company in earlier years and with competitors, and read liquidity, leverage, and profitability together.
Margins
To work out the margin and markup on a single product, use the profit margin calculator.
How to use it
- Enter balance sheet figures at the end of the period.
- Enter income statement figures for the period.
- Read the ratios and their formulas.
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Frequently asked questions
What is a good current ratio?
Often 1.5 to 2 is comfortable, but it depends on the industry: supermarkets run below 1 because stock turns into cash fast, while manufacturers need more.
Why is return on equity so high in my results?
High debt shrinks equity and lifts ROE; compare it with debt to equity and return on assets before reading it as good news.
Should I use average or year-end balances?
Analysts often average the start and end of the year for return ratios; this calculator uses the figures you enter.
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