Enter a balance sheet and an income statement once, and the analyzer calculates every ratio on this site that the two statements support: liquidity, profitability, leverage and efficiency. It breaks return on equity into its three DuPont parts, shows where each ratio sits among US-listed companies in the industry you choose, and lists the points worth a closer look. You can print the whole report.
It opens with figures for an example business. Replace them with your own, or clear the form and start from nothing.
Your ratio report
The report appears here once the figures are entered.
Where to find each figure
- Balance sheet lines. Take them from the balance sheet at the end of the year. Put anything that does not fit a named line into the matching “other” line, so the calculated totals agree with your statement.
- Operating expenses. Every cost between gross profit and operating income: selling, administrative and research costs, and any depreciation charged there.
- Depreciation and amortization. Shown in the cash flow statement or the notes. It is already included in the costs above; the analyzer uses it only to work out EBITDA.
- Start-of-year balances. The figures at the end of the previous year, usually in the comparative column of the balance sheet. With them, ratios that compare a year’s income with a balance use the average of the two dates.
- Revenue for credit sales. Days sales outstanding and receivables turnover treat all revenue as credit sales. If some of your sales are paid at once, those two results come out lower than the true collection period.
How the report works
- The same formulas as the calculators. Each ratio uses the formula on its own page, so the results match the single-ratio calculators. The ratio names link to those pages.
- Totals from your lines. The analyzer adds up the totals and works out equity as total assets minus total liabilities. Check them against your statements before reading the ratios.
- Industry comparisons. The medians and positions come from the financial statements US-listed companies file with the SEC. Choose the industry closest to the business; “higher than 60%” means 60% of those companies reported a lower figure.
- Points to look at. The report notes conditions such as current liabilities above current assets, a loss for the year, or a ratio outside the middle half of the industry. They are prompts for questions, not judgments.
What the report cannot tell you
- Change over time. One year’s statements show one set of dates. Run the analyzer for earlier years too, and look at how each ratio moves.
- How small businesses compare. The industry figures describe listed companies, which are larger than most businesses and often borrow on easier terms.
- Accounting choices. Two businesses can report the same activity differently, for example in how they value inventory or classify costs. The notes to the statements explain the choices.
- Advice. The report is educational. It does not say whether a business is a good investment, a safe borrower or well run.
For the method behind it, read how to analyze financial ratios and the financial ratio analysis example.
Prefer a spreadsheet? The same analyzer is one of the free Excel and Google Sheets templates, with the industry medians built in.
To see the same ratios for a listed company, worked out from its SEC filings for each of the last five years, use the company ratio lookup.