FinancialRatios.guide exists because working out a ratio should come with the formula, the steps and an honest explanation, not just a number and a promise that it is “good”.
Our mission
To make the numbers behind a business understandable: every formula shown in full and tied to its sources, every calculation worked step by step, and every explanation clear about what a ratio can and cannot tell you.
What this site is
A reference for the financial ratios and business measures people use most, grouped into liquidity, profitability, leverage, efficiency and valuation. Each ratio page explains what the ratio measures, how to read a high or low result, and the mistakes to avoid, and it includes a calculator that shows every step.
Around the reference sit tools for business owners, such as margin, markup and break-even calculators, side-by-side comparisons of measures that are easy to confuse, guides to reading financial statements, a printable cheat sheet and embeddable calculators for teachers and writers.
Who makes it
FinancialRatios.guide is written and maintained by Usman Khurshid, an IT consultant and the founder of Itechtics, an IT agency, where he is also the editor. He has more than 15 years of experience helping small businesses build, run, fix and automate their IT systems. He also makes PaperSizes.guide.
Usman is not an accountant or a financial adviser, which is why every formula on this site is tied to published sources and tested, and why the site does not give personal financial advice.
Find Usman on Itechtics, X, GitHub and WordPress.org.
How we keep it accurate
Every formula comes from published sources, mainly open accounting and finance textbooks, accounting standards and regulators, and every page lists its sources. All calculators run on one shared set of formula definitions, which is covered by automated tests with hand-checked results. Where sources define a measure differently, the page says so and explains the variants. The methodology page spells out the process, and the sources page lists every reference.
Found a mistake? Tell us. Our editorial policy explains how corrections are handled.
Open data
The formula definitions behind the calculators are published as an open dataset under a Creative Commons Attribution licence. See the open data page.
Advertising and affiliate links
The site is free to use and may carry advertising and, in future, links to products or services that pay a commission. Those never affect which ratios are covered, how they are calculated or what the pages say about them, and ads never appear inside a calculator.