Financial Analysis Ratio Calculator

Enter your financial statement data below. This calculator will compute key **Liquidity, Profitability, Solvency, and Efficiency Ratios**.

Note: Enter positive numbers only. For items not applicable, enter '0'. Ensure data accuracy for meaningful results.

1. Balance Sheet Data (as of a specific date)

Cash, Accounts Receivable, Inventory, etc.
Portion of Current Assets that is Inventory.
Current Assets + Non-Current Assets (e.g., Property, Plant, Equipment).
Accounts Payable, Short-term Debt, etc.
All interest-bearing debt.
Total Assets - Total Liabilities.

2. Income Statement Data (for a period, e.g., one year)

Total sales generated.
Direct costs attributable to the production of goods sold by a company.
The "bottom line" profit after all expenses, taxes, and interest.
Sales made on credit. Use total revenue if not specified as credit sales.

Calculated Financial Ratios

Liquidity Ratios

Current Ratio: --
Quick Ratio (Acid-Test): --

Profitability Ratios

Gross Profit Margin: --
Net Profit Margin: --
Return on Assets (ROA): --
Return on Equity (ROE): --

Solvency Ratios

Debt-to-Equity Ratio: --

Efficiency Ratios

Inventory Turnover: --
Accounts Receivable Turnover: --

Interpreting the Ratios:

  • **Compare to Industry Benchmarks:** Ratios are most meaningful when compared to competitors or industry averages.
  • **Analyze Trends:** Look at how ratios change over several periods (e.g., years) to identify improvements or deterioration.
  • **Consider Context:** A high debt-to-equity ratio might be normal for capital-intensive industries but alarming for others.
  • **Higher is generally better** for profitability ratios (margins, ROA, ROE) and turnover ratios.
  • **Optimal range** for liquidity ratios (Current, Quick) varies, but often 1.5-2.0+ for Current Ratio is considered healthy.
  • **Lower is generally better** for solvency ratios (Debt-to-Equity).
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