Financial Ratio Calculator
Calculate current ratio, quick ratio, debt-to-equity, gross margin, and ROA from financial statement inputs.
Returns values with benchmark ranges for analysis.
Financial ratios are standardized metrics used to evaluate a company’s performance, financial health, and value. Investors, lenders, and managers use them to make informed decisions.
Key ratio categories:
Liquidity Ratios, which measure the ability to pay short-term obligations:
Current Ratio = Current Assets / Current Liabilities(healthy: above 1.5)Quick Ratio = (Current Assets - Inventory) / Current Liabilities(healthy: above 1.0)
Profitability Ratios, which measure the ability to generate profit:
Gross Margin = (Revenue - COGS) / Revenue × 100%Net Profit Margin = Net Income / Revenue × 100%Return on Assets (ROA) = Net Income / Total Assets × 100%Return on Equity (ROE) = Net Income / Shareholders' Equity × 100%
Leverage Ratios, which measure reliance on debt:
Debt-to-Equity = Total Debt / Shareholders' EquityDebt-to-Assets = Total Debt / Total Assets
When to use this calculator:
- Analyzing a company for investment
- Preparing financial reports or business plans
- Comparing companies within the same industry
- Monitoring business health over time
- Loan applications and credit analysis
Practical example: A company with $500,000 in current assets and $300,000 in current liabilities has a current ratio of 1.67, indicating good short-term financial health. If inventory is $100,000, the quick ratio is 1.33.
Industry benchmarks
These are the exact thresholds the calculator colours against, so the verdict it prints and this table always agree.
| Ratio | Good | Warning | Critical |
|---|---|---|---|
| Current Ratio | >1.5 | 1.0–1.5 | <1.0 |
| Quick Ratio | >1.0 | 0.5–1.0 | <0.5 |
| Gross Margin | >40% | 20–40% | <20% |
| Net Margin | >10% | 5–10% | <5% |
| Return on Assets | >5% | 2–5% | <2% |
| ROE | >15% | 10–15% | <10% |
| Debt/Equity | <1.0 | 1.0–2.0 | >2.0 |
| Debt/Assets | <0.5 | 0.5–0.7 | >0.7 |
A current ratio much above 2.0 is not automatically better, incidentally. It can mean cash and inventory sitting idle that the business could be putting to work.
Tips:
- Always compare ratios to industry averages, because what counts as healthy varies by sector.
- Look at trends over multiple periods rather than a single snapshot.
- Ratios are most useful when comparing similar companies.
How we build and check this calculator
This calculator runs entirely in your browser, so the numbers you enter stay on your device. The math behind it is written by hand and tested against worked examples and standard references before the page goes live.
SuperGlobalCalculator is independently built and maintained. See how we build and verify our calculators.