Net Income
$50,000.00
Balance Sheet and Income Statement Analysis
Summarize basic balance sheet and income statement health.
Owners' Equity
$200,000.00
Net Margin
12.50%
Debt-to-Assets
60.00%
Return on Assets
10.00%
How to use the Balance Sheet and Income Statement Analysis
The Balance Sheet and Income Statement Analysis is free and runs entirely in your browser — no sign-up, and nothing you enter leaves your device. It opens pre-filled with a realistic example, so you can see how it works before replacing any figure with your own; the results update as you type. Press Calculate to refresh the result panel, or Reset to return to the example.
The inputs it asks for:
- Total Assets — a dollar amount.
- Total Liabilities — a dollar amount.
- Total Revenue — a dollar amount.
- Total Expenses — a dollar amount.
The formula
It applies the accounting identity and a few headline ratios. Equity is what's left of assets after liabilities; net income is revenue minus expenses; the ratios then gauge profitability and leverage:
Equity = Assets − Liabilities Net income = Revenue − Expenses
Net margin = Net income ÷ Revenue Return on assets = Net income ÷ Assets- Debt-to-assets
- liabilities ÷ assets — how much of the firm is financed by debt
This is a snapshot from summary totals, not a full statement analysis. The accounting identity (Assets = Liabilities + Equity) always holds; the ratios are only as meaningful as the figures you feed in, and are best read against prior periods or peers.
Worked example
Using the example values — Total Assets $500,000.00, Total Liabilities $300,000.00, Total Revenue $400,000.00, Total Expenses $350,000.00 — the Balance Sheet and Income Statement Analysis returns a Owners' Equity of $200,000.00. It also reports Net Income ($50,000.00), Net Margin (12.50%), Debt-to-Assets (60.00%).
Prefer your own numbers? Change any field above and this recomputes instantly.
Key terms
- Owners' equity
- Assets minus liabilities — the residual claim of the owners.
- Net margin
- Net income as a percentage of revenue — profitability per dollar of sales.
- Return on assets (ROA)
- Net income relative to total assets — how efficiently assets generate profit.
- Debt-to-assets
- The share of assets funded by liabilities — a leverage gauge.
Frequently asked questions
What is owners' equity?
What would remain for the owners if all assets were used to pay off all liabilities: Assets − Liabilities. It's the bottom line of the accounting identity.
Is a high return on assets always good?
Generally it signals efficient use of assets, but it varies hugely by industry — asset-light businesses show higher ROA than capital-intensive ones, so compare like with like.
What's a healthy debt-to-assets ratio?
It depends on the sector. Lower means less leverage and risk; some stable industries carry more debt comfortably. Trend and peer comparison matter more than any single number.