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.
Calculated Financial Ratios
Liquidity Ratios
Current Ratio:
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Quick Ratio (Acid-Test):
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Profitability Ratios
Gross Profit Margin:
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Net Profit Margin:
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Return on Assets (ROA):
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Return on Equity (ROE):
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Solvency Ratios
Debt-to-Equity Ratio:
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Efficiency Ratios
Inventory Turnover:
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Accounts Receivable Turnover:
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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).