Free Tool — Ratio Analyzer
Financial Ratio Calculator
Seven key ratios from a handful of figures — liquidity, leverage, margins and efficiency in one view.
Balance sheet figures
P&L figures (annual)
Current ratio
2
Quick ratio
1.25
Debt to equity
0.5
Gross margin
37.5%
Net margin
10%
Inventory turnover
5×
Receivable days (DSO)
30 days
Rules of thumb: a current ratio of 1.5–3 and quick ratio above 1 signal healthy liquidity; a debt-to-equity under 2 is comfortable for most small businesses; and receivable days show how long customers take to pay you on average.
A health check-up for your business
Individual numbers on a balance sheet say little on their own — ratios put them in context. Can you cover near-term bills (current and quick ratios)? Are you over-borrowed (debt to equity)? Is the core trade profitable (gross and net margins)? Is cash stuck in stock or with customers (inventory turnover and receivable days)?
Banks and investors compute exactly these ratios when they look at your accounts, so it pays to see them first. Enter the figures from your latest balance sheet and P&L — or build those statements with our free Balance Sheet and P&L tools — and read the results with the benchmarks provided.
Financial ratio FAQs
Between 1.5 and 3 is comfortable for most businesses. Below 1 means current liabilities exceed current assets — a liquidity warning. Far above 3 may mean idle cash or overstocked inventory.
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