Business Ratios Calculator
Turn an income statement and balance sheet into a professional liquidity, leverage, profitability and efficiency dashboard.
Financial Decision Lab
Business Ratios
Operating Health Dashboard
Business Ratios Workbench
Inputs Recalculate Instantly
Trailing Twelve Months
Financial Statement Inputs
Liquidity
Capital Structure
Performance
Calculated Metrics
Ratio Dashboard
Current Ratio
1.81x
Current Assets / Current Liabilities
Quick Ratio
1.12x
Cash + Receivables / Current Liabilities
Working Capital
$170,000
Debt To Equity
0.95x
Debt To Assets
48.8%
Interest Coverage
7.25x
Gross Margin
40.0%
Operating Margin
12.5%
Net Margin
7.9%
Return On Assets
11.4%
Return On Equity
22.2%
Asset Turnover
1.44x
Model Checks
Review Signals
Baseline Health Checks
5 Of 5 Passed
Thresholds are general screening guides, not industry benchmarks.
Compare ratios with the same accounting periods, policies, and industry peer group. Inventory-heavy, financial, and subscription businesses require different benchmarks.
Calculation Trace Show
Current Assets / Current Liabilities1.81xOperating Income / Revenue12.5%(Operating Income + Interest) / Interest7.25xDISCLAIMER: This tool provides educational planning estimates, not financial, investment, tax, legal, accounting, lending, or appraisal advice. Results depend on the assumptions you enter and may differ materially from actual outcomes. Rates, taxes, fees, market returns, benefits, and regulations can change. Consult qualified professionals before making consequential financial decisions.
What Is the Business Ratios Calculator?
The Business Ratios Calculator converts core financial-statement inputs into an operating-health dashboard. It calculates gross, operating and net margin; current and quick ratios; debt-to-equity and debt-to-assets; return on assets and equity; asset and inventory turnover; and interest coverage. Context bands and calculation traces help explain what each ratio measures without presenting generic benchmarks as universal rules.
How It Works
Enter revenue, cost of goods sold, operating expenses, interest, taxes and net income alongside cash, receivables, inventory, assets, current liabilities, total debt and equity. Review each ratio group, inspect warnings for denominator or coverage issues, and compare the results with the company's own history and genuinely comparable peers.
When to Use It
Use it for monthly management review, lender preparation, acquisition screening, covenant monitoring, board reporting or as an input check before building a business valuation.
Frequently Asked Questions
- What is a good business ratio?
- There is no universal good value. Capital intensity, business model, seasonality, accounting policy and industry economics can make the same ratio healthy in one company and risky in another.
- Why are some results marked unavailable?
- A ratio cannot be interpreted when its denominator is zero or economically invalid. The calculator surfaces that condition instead of substituting a misleading zero.
- Should I use average balance-sheet values?
- For turnover and return ratios, averages of beginning and ending assets, inventory or equity are usually more informative than one point-in-time balance when those values changed materially.
Last reviewed: 2026-06-27