Financial Ratio Calculator
Calculate common financial ratios to gauge a business's health.
Numbers that reveal health
Financial ratios turn raw figures from a balance sheet and income statement into meaningful measures of a business's liquidity, profitability and leverage. This calculates the common ones, so you can assess how a business is doing rather than staring at absolute numbers that mean little on their own.
Enter the relevant figures to see the ratios.
Ratios need context
A ratio's value is that it is comparable — it strips out size, so a small and a large business can be measured on the same footing. But a ratio in isolation says little; it means something only against a benchmark, the industry norm, or the same business over time. A current ratio of two might be healthy in one industry and worrying in another. So the useful practice is comparison: this business versus its peers, or this year versus last. The ratios point to where to look — is liquidity tight, is debt high, are margins slipping — turning a wall of figures into a set of questions worth asking.
Frequently asked questions
Why use ratios instead of raw figures?
Ratios strip out size, so businesses of different scales can be compared on the same footing, and trends over time become clear.
Can I judge a business from one ratio?
Not really — a ratio means something only against a benchmark, the industry norm, or the same business over time. Context is everything.
Is anything uploaded?
No. The calculation happens in your browser.