Financial Ratios Analysis Calculator
Analyze business health with key financial ratios: Current Ratio, ROE, ROA, and Debt-to-Equity. Includes automated health checks.
Financial Inputs
About
Financial ratios are the vital signs of a business. They distill complex data from the Balance Sheet and Income Statement into actionable metrics. This tool computes four critical ratios used by investors and lenders to assess solvency, profitability, and operational efficiency.
The Current Ratio measures liquidity (ability to pay short-term debts). Debt-to-Equity assesses leverage and risk. Return on Equity (ROE) and Return on Assets (ROA) measure profitability relative to the resources invested. The dashboard highlights potential red flags, such as negative equity or dangerous leverage levels, providing an instant health check for small businesses or corporate analysis.
Formulas
1. Current Ratio (Liquidity):
2. Return on Equity (ROE):
3. Debt-to-Equity (D/E):
Reference Data
| Ratio | Formula | Good Benchmark | Significance |
|---|---|---|---|
| Current Ratio | Current Assets / Current Liabilities | 1.5 to 2.0 | Short-term Liquidity |
| Debt-to-Equity | Total Liabilities / Shareholder Equity | < 2.0 | Financial Leverage |
| ROE | Net Income / Shareholder Equity | 15% - 20% | Profitability for Owners |
| ROA | Net Income / Total Assets | > 5% | Asset Efficiency |
| Quick Ratio | (Assets - Inventory) / Liabilities | > 1.0 | Immediate Liquidity |