Financial Ratios Calculator

Compute liquidity, profitability and leverage ratios to analyse any business fast.

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The short answer

Four ratios tell most of a business’s story: current ratio (can it pay short-term bills?), debt-to-equity (how leveraged?), net margin (how profitable?) and ROE (how well is capital used?). A current ratio below 1 is a red flag — it means short-term dues exceed short-term assets.

How to use the financial ratios calculator

  1. Enter assets, liabilities, debt and equity.
  2. Add profit and revenue.
  3. Get the four key ratios with interpretation.

Financial Ratios Calculator — FAQs

What is a good current ratio?

Between 1.2 and 2 is healthy for most businesses. Below 1 signals liquidity stress; far above 2 may mean idle cash.

What does debt-to-equity tell me?

How much of the business is funded by borrowing vs owners’ money. Under 1 is conservative; above 2 is aggressive and risky in downturns.

How is ROE different from profit margin?

Margin shows profit per rupee of sales; ROE shows profit per rupee of shareholder money invested. A business can have thin margins but great ROE if it’s capital-efficient.

Can I use this for stocks I’m researching?

Yes — pull the numbers from the company’s balance sheet and P&L. Compare ratios with industry peers, not in isolation.

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