Debt-to-Equity
0.60
Financial Ratios
Calculate key liquidity, leverage, and profitability ratios.
Current Ratio
2.00
Return on Assets (ROA)
12.50%
Return on Equity (ROE)
20.00%
Net Profit Margin
12.50%
How to use the Financial Ratios
The Financial Ratios 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:
- Current Assets — a dollar amount.
- Current Liabilities — a dollar amount.
- Total Debt — a dollar amount.
- Total Equity — a dollar amount.
- Net Income — a dollar amount.
- Revenue — a dollar amount.
- Total Assets — a dollar amount.
The formula
It computes five staple ratios across the three families analysts watch — liquidity, leverage and profitability — from your balance-sheet and income figures:
Current ratio = Current assets ÷ Current liabilities
Debt-to-equity = Total debt ÷ Total equity
ROA = Net income ÷ Total assets · ROE = Net income ÷ Total equity · Net margin = Net income ÷ Revenue- Liquidity
- the current ratio — ability to cover short-term bills
- Leverage
- debt-to-equity — reliance on debt vs owners' capital
- Profitability
- ROA, ROE and net margin
Ratios mean little in isolation — their value is in comparison, against the same firm over time or against industry peers. A "good" current ratio for a supermarket differs from one for a software firm.
Worked example
Using the example values — Current Assets $200,000.00, Current Liabilities $100,000.00, Total Debt $150,000.00, Total Equity $250,000.00, Net Income $50,000.00, Revenue $400,000.00, and 1 more — the Financial Ratios returns a Current Ratio of 2.00. It also reports Debt-to-Equity (0.60), Return on Assets (ROA) (12.50%), Return on Equity (ROE) (20.00%).
Prefer your own numbers? Change any field above and this recomputes instantly.
Key terms
- Current ratio
- Current assets ÷ current liabilities; above 1 means short-term assets cover short-term debts.
- Debt-to-equity
- Total debt relative to shareholders' equity — a core leverage measure.
- Return on equity (ROE)
- Net income as a percentage of equity — the return to owners.
- Net profit margin
- Net income as a percentage of revenue.
Frequently asked questions
What's a good current ratio?
Often cited as around 1.5–3, but it's industry-specific. Below 1 can signal liquidity strain; very high may mean idle assets. Compare to peers.
ROA vs ROE — what's the difference?
ROA measures profit against all assets; ROE against just the owners' equity. Leverage (debt) lifts ROE above ROA, which is why ROE alone can flatter a heavily indebted firm.
Can I compare these across industries?
Cautiously. Capital structures and asset intensity vary widely, so a ratio that's strong in one sector can be weak in another. Same-sector and over-time comparisons are the most reliable.