Financial Ratios Calculator

Calculate profitability, liquidity, leverage and efficiency ratios from a company's financial statements.

Your inputs

Revenue	$1,000,000
Net income	$80,000
Operating income (EBIT)	$130,000
Interest expense	$20,000
Tax rate	25 %
Total assets	$900,000
Shareholders' equity	$400,000
Interest-bearing debt	$300,000
Current assets	$350,000
Inventory	$120,000
Cash and equivalents	$60,000
Current liabilities	$200,000
Total liabilities	$500,000

Revenue

Net income

Operating income (EBIT)

Interest expense

Tax rate

Total assets

Shareholders' equity

Interest-bearing debt

Current assets

Inventory

Cash and equivalents

Current liabilities

Total liabilities

Return on equity

20%

Current ratio 1.75, interest covered 6.5×, debt ratio 55.6%. Compare ratios with the same industry and with previous years.

Ratios

Ratio	Value	Formula
Return on equity (ROE)	20%	Net income ÷ equity
Return on assets (ROA)	8.9%	Net income ÷ total assets
Return on sales (net margin)	8%	Net income ÷ revenue
Operating margin	13%	EBIT ÷ revenue
ROIC	13.9%	EBIT × (1 − tax) ÷ (debt + equity)
Current ratio	1.75	Current assets ÷ current liabilities
Quick ratio	1.15	(Current assets − inventory) ÷ current liabilities
Cash ratio	0.3	Cash ÷ current liabilities
Debt ratio	55.6%	Total liabilities ÷ total assets
Debt to equity	0.75	Interest-bearing debt ÷ equity
Interest coverage	6.5×	EBIT ÷ interest expense
Asset turnover	1.11×	Revenue ÷ total assets

About the Financial Ratios Calculator

Financial ratios turn a balance sheet and income statement into comparable measures. Profitability ratios (ROE, ROA, margins, ROIC) show how well the business earns; liquidity ratios (current, quick, cash) show whether it can pay short-term bills; leverage ratios show how much it relies on debt; turnover shows how hard its assets work. Use year-end or average balances consistently.

The formula

ROE = NI ÷ equity; current = CA ÷ CL; quick = (CA − inventory) ÷ CL; coverage = EBIT ÷ interest

Worked example

Example: Return on equity = 22.5%

Inputs: Revenue: $1,200,000; Net income: $90,000; Operating income (EBIT): $130,000; Interest expense: $20,000; Tax rate: 25%; Total assets: $900,000; Shareholders' equity: $400,000; Interest-bearing debt: $300,000; Current assets: $350,000; Inventory: $120,000; Cash and equivalents: $60,000; Current liabilities: $200,000; Total liabilities: $500,000.
Formula: ROE = NI ÷ equity; current = CA ÷ CL; quick = (CA − inventory) ÷ CL; coverage = EBIT ÷ interest
Result: Return on equity = 22.5%

Questions people ask

What's a healthy current ratio?

Often 1.2–2, but it varies by industry.

Is a high ROE always good?

Not if it comes from heavy debt; check leverage too.