Financial Ratios Calculator
This calculator helps you to zero in on areas of your business that may need attention. Areas such as solvency, liquidity, operational efficiency and profitability.
How the financial ratios calculator works
It turns your balance-sheet figures into the liquidity and leverage ratios analysts rely on: the current and quick ratios for short-term health, and debt-to-equity for leverage, plus your working capital.
Worked example: with current assets of $250,000, inventory (of current assets) of $80,000 and current liabilities of $120,000, the financial ratios calculator shows current ratio of 2.08×.
- Current ratio
- 2.08×
- Quick ratio
- 1.42×
- Debt-to-equity
- 0.88×
- Working capital
- $130,000
The formula
Current ratio = current assets ÷ current liabilities. Quick ratio = (current assets − inventory) ÷ current liabilities. Debt-to-equity = total liabilities ÷ total equity.
Results are estimates for educational purposes and are not financial advice. Confirm exact figures with your lender, plan administrator or advisor.
Questions about the financial ratios calculator
What is a healthy current ratio?
Above 1.0 means you can cover short-term obligations; 1.5–2.0 is generally comfortable. Too high can mean idle assets that could be put to better use.
Why exclude inventory in the quick ratio?
Because inventory can be slow to convert to cash. The quick ratio is a stricter liquidity test using only assets that are readily available to pay bills.
What does debt-to-equity tell me?
How much of the business is financed by debt versus owners’ equity. Higher leverage can amplify returns but increases financial risk and the burden of fixed payments.
Is the Financial Ratios Calculator free to use?
Yes. Every calculator on FinCalculators is completely free, with no sign-up, login or paywall. You can run as many scenarios as you like.