Financial Ratio Calculators
Enter one set of income statement and balance sheet figures and get the full set: margin, liquidity, leverage and return, each with the formula shown and what the number actually tells you. No sign-up.
Work it out
Opens on a worked example. Change any line and every figure follows. Cost of goods sold and operating expenses go in before depreciation and amortisation.
Compare with a prior period
Enter the same lines for the earlier period and each ratio says what moved it.
Runs entirely in your browser. Nothing you enter is sent to us or stored.
Margin
| Ratio | Value |
|---|---|
| Gross margin | 31.0% |
| Operating margin | 10.1% |
| Net margin | 7.2% |
| EBITDA | 3,600,000.00 |
| EBITDA margin | 12.7% |
Liquidity
| Ratio | Value |
|---|---|
| Current ratio | 2.17x |
| Current ratio, deferred revenue excluded | 2.37x |
| Quick ratio | 1.40x |
| Quick ratio, receivables over 90 days excluded | 1.31x |
| Working capital | 5,060,000.00 |
| Days sales outstanding | 51 days |
| Days inventory outstanding | 58 days |
| Days payables outstanding | 45 days |
| Cash conversion cycle | 64 days |
Leverage
| Ratio | Value |
|---|---|
| Debt service coverage | 3.96x |
| Fixed charge coverage | 1.94x |
| Interest coverage | 9.29x |
| Debt to equity | 0.67x |
Return
| Ratio | Value |
|---|---|
| Return on assets | 12.5% |
| Return on equity | 26.3% |
Related reading
Where the figures behind a ratio come from, and what it takes to trust them.
- Glossary
General Ledger
The general ledger is the master record of an entity's accounts, holding every posted debit and credit by account and period. Subledgers feed it, the chart of accounts defines its structure, and the trial balance is its summary.
- Glossary
Balance Sheet Reconciliation
Balance sheet reconciliation is the practice of reconciling every balance sheet account, not just cash, on a documented schedule with a named owner and risk tier per account. It is the close deliverable auditors test first, and account reconciliation is the technique it applies, account by account.
- Glossary
Variance Analysis
Variance analysis compares an actual result against a benchmark, usually budget, forecast, or prior period, and explains the difference with specific, evidenced causes. It is distinct from flux analysis, which reviews period-over-period fluctuations during the close.
- Free tool
13-Week Cash Flow Forecast
What a ratio is a snapshot of, week by week.
How to read a set of ratios
Four things worth saying once, here, so the leaves do not have to repeat them.
A ratio is a question, not an answer. It tells you where to look. A current ratio of 0.9 does not mean a company is in trouble; it means find out why, and the answer might be that it collects from customers in nine days and pays suppliers in sixty, which is a strength.
Benchmarks are the most misused thing in this subject. An industry average is a distribution with a company's name attached to one point on it, and the definitions underneath it are rarely the ones you used. Compare a company to itself over time first, and to a benchmark second, with the definition checked.
The denominator is usually where the story is. Margins fall because costs rose or because the mix changed. The current ratio improves because current assets grew or because current liabilities were paid down with cash you now do not have. Two inputs, two stories, one number.
Ratios computed from a stale or unreconciled ledger are worse than no ratios, because they are quoted with confidence. The date of the close matters more than the precision of the division.
What these calculators do not do
These calculators do arithmetic on figures you supply. They do not read your accounts, do not know your industry, do not know what is inside your cost of goods sold, and do not produce an opinion on a business. Every ratio here can be computed several defensible ways and this page states the convention it used. Where a ratio will be reported to a lender or an investor, use their definition rather than this one.
Ratios are downstream
of the close.
Connected accounts, reconciled at zero tolerance, with statements for any period and any entity. Your team approves what the agents propose, and the numbers the ratios come from are ones you can sign.