Free calculators · every step shown
Financial ratios, with the working shown.
Enter a company’s figures and see the formula, every step and what the result means. 23 ratios and 6 business formulas.
Popular:Current ratioMargin vs markupBreak-evenReturn on equity
Current ratio
2.00
- 200,000
- ÷100,000
- =2.00
Example Co., an illustrative companyOpen the current ratio calculator →
Start with a question
All 29 ratios and formulas →Liquidity
Can the business pay its bills this year?
Profitability
How much of each sale becomes profit?
- Gross profit marginGross profit ÷ Revenue × 100
- Operating profit marginOperating income ÷ Revenue × 100
- Net profit marginNet income ÷ Revenue × 100
- EBITDA marginEBITDA ÷ Revenue × 100
Leverage
How much does it rely on debt?
Efficiency
How fast does cash move through it?
- Asset turnoverRevenue ÷ Average total assets
- Inventory turnoverCost of goods sold ÷ Average inventory
- Days sales outstandingAverage accounts receivable ÷ Net credit sales × Days in period
- Days payable outstandingAverage accounts payable ÷ Cost of goods sold × Days in period
Valuation
What is the market paying for it?
For business owners
What price, volume and profit do I need?
Compare
Ratios people mix up
- Current ratio vs quick ratioBoth ratios compare short-term assets with current liabilities.
- Debt-to-equity vs debt-to-assetsBoth ratios measure how much of a business is financed by liabilities.
- EBIT vs EBITDAEBIT is earnings before interest and taxes.
- Gross vs net profit marginGross profit margin shows the share of revenue left after the direct cost of what was sold.
Guides
Learn to read the numbers
- Average vs ending balances in ratiosRatios that set a full period of income against a balance sheet figure often use the average of the opening and closing balances.
- Financial ratio analysis exampleA worked ratio analysis of Example Co., an illustrative company with made-up figures, not a real business.
- How to analyze financial ratiosA practical method for financial ratio analysis: start with a question, choose ratios by category, compare them over time and with similar businesses on the same definitions, and read related ratios together with the notes.
- How to read financial statementsThe balance sheet, income statement and cash flow statement each answer a different question about a business.
Free resources
For teachers, students and writers
Why the numbers can be trusted
Every step shownThe formula, your inputs, each step and the rounding, so you can check it by hand.
Sources on every pageEach definition cites the accounting and finance references it follows.
Your figures stay putCalculations run in your browser. Nothing you enter is sent or stored.
Context, not verdictsWe explain what a result can mean and what it cannot tell you.