Current ratio
2.00×
Current assets available per unit of current liabilities.
Formula and inputs used
CA / CL
- Current assets
- $300.000000
- Current liabilities
- $150.000000
Finance · transparent analysis
Financial Ratio Analyzer
Financial ratios relate liquidity, debt, profitability, and cash-flow figures. Enter what you have: each ratio shows whether its required data is sufficient.
Results
Example calculated; edit any figure to recalculate.
Manual figures; no entry is automatically verified.
Quick ratio
1.00×
Specified liquid assets per unit of current liabilities; inventory is excluded.
Formula and inputs used
(Cash + STI + AR) / CL
- Cash and cash equivalents
- $50.000000
- Short-term investments
- $20.000000
- Net receivables
- $80.000000
- Current liabilities
- $150.000000
Debt-to-equity
0.50×
Interest-bearing debt per unit of equity under your selected debt convention.
Interest-bearing debt is distinct from total liabilities.
Formula and inputs used
Debt / Equity
- Interest-bearing debt
- $200.000000
- Closing shareholders’ equity
- $400.000000
Debt-to-assets
20.00%
Interest-bearing debt as a percentage of assets; other liabilities are excluded.
Interest-bearing debt is distinct from total liabilities.
Formula and inputs used
Debt / Assets × 100
- Interest-bearing debt
- $200.000000
- Closing total assets
- $1,000.000000
Gross margin
40.00%
Gross profit retained from each 100 units of revenue before operating expenses.
Uses your reported gross profit; conflicting cost totals are rejected.
Formula and inputs used
Gross profit / Revenue × 100
- Revenue
- $1,000.000000
- Reported gross profit
- $400.000000
- Cost of goods sold
- $600.000000
Operating margin
20.00%
Operating income per 100 units of revenue under your reporting definition.
Formula and inputs used
Operating income / Revenue × 100
- Operating income
- $200.000000
- Revenue
- $1,000.000000
Net profit margin
10.00%
Net income per 100 units of revenue for this reporting period.
Formula and inputs used
Net income / Revenue × 100
- Net income
- $100.000000
- Revenue
- $1,000.000000
Return on assets (ROA)
11.11%
Period net income relative to the selected asset balance; a quarterly return is not annualized.
Return for the entered reporting period; not annualized.
Formula and inputs used
Net income / ((Opening assets + Closing assets) / 2) × 100
- Net income
- $100.000000
- Closing total assets
- $1,000.000000
- Opening total assets
- $800.000000
Return on equity (ROE)
28.57%
Period net income relative to the selected equity balance; ownership scope must agree.
Return for the entered reporting period; not annualized.
Formula and inputs used
Net income / ((Opening equity + Closing equity) / 2) × 100
- Net income
- $100.000000
- Closing shareholders’ equity
- $400.000000
- Opening shareholders’ equity
- $300.000000
Interest coverage
11.00×
EBIT per unit of gross interest expense; not a guarantee of cash available to pay interest.
Formula and inputs used
EBIT / Gross interest expense
- EBIT (before interest and taxes)
- $220.000000
- Gross interest expense
- $20.000000
Free cash flow margin
10.00%
Operating cash flow less positive capital spending per 100 units of revenue.
FCF = operating cash flow − positive capital spending; a non-GAAP definition.
Formula and inputs used
(CFO − CapEx) / Revenue × 100
- Cash from operations
- $160.000000
- Capital expenditures (positive outflow)
- $60.000000
- Revenue
- $1,000.000000
How it works
Current ratio divides current assets by current liabilities. Quick ratio uses cash, short-term investments and net receivables, excluding inventory and prepayments. Debt means interest-bearing borrowings, not total liabilities. ROA and ROE use opening-and-closing average balances; a closing-balance proxy is used only when explicitly selected.
Formulas and conventions
- Current ratio = current assets / current liabilities. Quick ratio = (cash + short-term investments + net receivables) / current liabilities.
- Debt/equity = interest-bearing debt / equity; debt/assets = interest-bearing debt / assets × 100.
- Gross margin = gross profit / revenue × 100; operating margin = operating income / revenue × 100; net margin = net income / revenue × 100.
- ROA = net income / average assets × 100; ROE = net income / average equity × 100.
- Interest coverage = EBIT / gross interest expense; FCF margin = (operating cash flow − capital expenditures) / revenue × 100.
Worked example
Illustrative example: current assets300 and liabilities150 →2.00×. Cash50 + investments20 + receivables80 → quick ratio1.00×. Revenue1000 and cost600 → gross margin40%. Income100 and assets800→1000 → ROA11.11%; equity300→400 → ROE28.57%. EBIT220/interest20 →11.00×. Cash flow160−capital60 over revenue1000 →10%.
Assumptions and limitations
- Figures are manual entries or illustrative examples; no company data is loaded.
- Use compatible currency, scale, accounting definitions and reporting periods. No foreign exchange conversion.
- Public formulas run in browser memory; financial entries are not transmitted or stored.
- This is not an audit, investment recommendation, or guaranteed outcome.
- Missing values are not inferred and manual figures are not verified by the SEC.
- No automatic filing ingestion, OCR, or account connections.
Reported gross profit may be used without cost of sales; when both are entered and disagree, gross margin is rejected. EBIT is entered separately. A closing-balance proxy changes the method and is labeled in results.
Sources and freshness
References explain accounting or business context. This tool states its specific formula conventions; no source verifies your entries.
- SEC — Beginners’ Guide to Financial Statements — U.S. Securities and Exchange Commission
- SEC EDGAR filing search — U.S. Securities and Exchange Commission
Mathematical method reviewed: · Current. Reviewed when the method changes. Your company figures do not have an official verification date in this tool.
Frequently asked questions
What happens when data is missing?
Only ratios with all required inputs are calculated. Blank means missing; zero is a real value and N/A means not applicable.
Are debt and total liabilities the same?
No. Debt here means interest-bearing borrowings. Declare whether lease liabilities are included and keep that convention consistent when comparing.
Are quarterly returns annualized?
No. ROA and ROE cover the entered period. Annual and quarterly periods are not mixed.
Does a favorable ratio prove a company is healthy?
No. Industry, accounting policies, risk and other information matter. This tool explains calculations without assigning a financial-health score.