Business Ratios Calculator
Turn an income statement and balance sheet into a clear liquidity, leverage, profitability and efficiency analysis.
What Is the Business Ratios Calculator?
The Business Ratios Calculator converts core financial-statement inputs into an operating-health review. It calculates gross, operating and net margin; current and quick ratios; debt-to-equity and debt-to-assets; return on assets and equity; asset and inventory turnover; and interest coverage. Context bands and calculation traces explain each measure, while company history and comparable peers provide the appropriate benchmark.
How It Works
Enter revenue, cost of goods sold, operating expenses, interest, taxes and net income alongside cash, receivables, inventory, assets, current liabilities, total debt and equity. Review each ratio group, inspect warnings for denominator or coverage issues, and compare the results with the company's own history and comparable peers.
When to Use It
Use it for monthly management review, lender preparation, acquisition screening, covenant monitoring, board reporting or as an input check before building a business valuation.
Frequently Asked Questions
- What is a good business ratio?
- There is no universal good value. Capital intensity, business model, seasonality, accounting policy and industry economics can make the same ratio healthy in one company and risky in another.
- Why are some results marked unavailable?
- Unavailable means the calculation has a zero or economically invalid denominator, so there is no interpretable ratio.
- Should I use average balance-sheet values?
- For turnover and return ratios, averages of beginning and ending assets, inventory or equity are usually more informative than one point-in-time balance when those values changed materially.
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