Financial ratio calculator: ratio analysis from one set of accounts
This financial ratio calculator turns a profit and loss account and a balance sheet into twenty-one standard ratios in four groups — liquidity, leverage and coverage, profitability and efficiency. Each ratio is shown with the exact formula used and a plain note on what the number means for these accounts, so you can follow every step of the ratio analysis instead of trusting a black box.
Type the figures, or paste lines copied from a spreadsheet or annual report and let the tool fill the fields it recognises. It works in rupees, dollars, pounds, euros and more, and nothing you enter leaves your browser. For margins on their own, with a waterfall and period comparison, use the net margin calculator; for bank working-capital limits, the working capital calculator.
How to use the Financial Ratio Calculator
- Pick the currency and the number of days the P&L covers (365 for a year).
- Enter the profit and loss figures: revenue, cost of goods sold, operating expenses without depreciation, depreciation, other income, interest, tax and loan principal repaid.
- Enter the closing balance sheet: cash, short-term investments, receivables, inventory, other current assets, non-current assets, payables, short-term and long-term debt, other liabilities and equity.
- Or open Paste figures from your accounts, paste one item per line and press Fill the fields, then check each field.
- Read return on equity and its DuPont split, the key ratio tiles and the full table, and copy the summary.
Financial Ratio Calculator features
Twenty-one ratios at once
Current, quick and cash ratios; net working capital; debt to equity, debt ratio, equity multiplier, interest coverage and DSCR; gross, operating and net margin; ROA, ROE, ROCE; asset and inventory turnover; DIO, DSO, DPO and the cash conversion cycle.
Formula on every row
Each result sits next to the formula used, so it can be checked by hand or in a spreadsheet.
DuPont breakdown
ROE split into net margin × asset turnover × equity multiplier.
Paste from statements
Recognises common labels such as “Revenue from operations”, “Finance costs” and “Trade receivables”.
Sanity checks
Flags a balance sheet that does not balance, negative equity and a net loss.
Ratio formulas and a worked example
Example company: revenue ₹50,00,000, cost of goods sold ₹20,00,000, operating expenses ₹15,00,000, depreciation ₹3,00,000, other income ₹1,00,000, interest ₹2,00,000 and tax ₹2,75,000, giving EBIT of ₹12,00,000 and net profit of ₹8,25,000. The balance sheet has current assets of ₹17,00,000 (including ₹5,00,000 of inventory and ₹6,00,000 of receivables), total assets of ₹50,00,000, current liabilities of ₹10,00,000, long-term debt of ₹15,00,000 and equity of ₹25,00,000. The tool loads these figures as its example.
| Ratio | Formula | Example |
|---|---|---|
| Current ratio | Current assets ÷ current liabilities | 17 ÷ 10 = 1.70 |
| Quick ratio | (Cash + investments + receivables) ÷ current liabilities | 11 ÷ 10 = 1.10 |
| Debt to equity | Total debt ÷ equity | 18 ÷ 25 = 0.72 |
| Interest coverage | EBIT ÷ interest | 12 ÷ 2 = 6.00× |
| DSCR | (Net profit + depreciation + interest) ÷ (interest + principal) | 13.25 ÷ 6 = 2.21× |
| ROE | Net profit ÷ equity | 8.25 ÷ 25 = 33.0% |
| ROCE | EBIT ÷ (total assets − current liabilities) | 12 ÷ 40 = 30.0% |
| Cash conversion cycle | DIO + DSO − DPO | 91.3 + 43.8 − 73.0 = 62.1 days |
Reading the four groups
- Liquidity asks whether short-term bills can be paid. The quick ratio leaves out inventory, which may take time to sell; the cash ratio counts only cash and near-cash.
- Leverage and coverage show how much of the business is funded by borrowing and how comfortably profit and cash accruals meet interest and repayments. Lenders set their own minimums in loan terms.
- Profitability compares profit with sales (margins) and with the money invested (ROA, ROE, ROCE). ROE can be pushed up by debt; the DuPont split shows whether it comes from margin, asset use or leverage.
- Efficiency measures how hard assets work. The cash conversion cycle shows how long cash is tied up in stock and customer credit after supplier credit; the inventory turnover calculator covers stock in more detail.
Common mistakes
- Mixing periods: a quarter’s revenue with a full year’s interest, or a half-year P&L with 365 days.
- Counting depreciation inside operating expenses as well as on its own line, which double-counts it.
- Including GST or VAT in revenue. It is collected for the government and distorts margins and DSO.
- Comparing across industries: a retailer and a software company run on very different ratios.
- Reading one year in isolation: the trend over three to five years usually says more than any single value.
Financial Ratio Calculator FAQ
How do I use a financial ratio calculator?
Enter revenue, costs, interest and tax from the profit and loss account and the closing balances from the balance sheet. The financial ratio calculator then shows liquidity, leverage, profitability and efficiency ratios, each with its formula.
What are the main types of financial ratios?
Liquidity (current, quick, cash), leverage and coverage (debt to equity, debt ratio, interest coverage, DSCR), profitability (margins, ROA, ROE, ROCE) and efficiency (asset turnover, inventory turnover, receivable and payable days, cash conversion cycle).
What is the difference between ROE and ROCE?
ROE divides net profit by equity, so it is after interest and tax and rises with borrowing. ROCE divides operating profit (EBIT) by capital employed — equity plus long-term debt — so it measures the return on all long-term funding before financing costs.
How is DSCR calculated?
This tool uses (net profit + depreciation + interest) ÷ (interest + principal repaid in the period), the cash-accrual form common in Indian bank appraisal. Some lenders use EBITDA ÷ debt service instead, so check the definition in your loan terms.
Can I do ratio analysis in Excel instead?
Yes. Every formula is printed next to its result, so you can rebuild the table in a spreadsheet; copy the summary to compare with your own sheet.
What is a good current ratio or debt to equity?
It depends on the industry, the business model and the lender, so this tool shows no benchmarks. Compare with the company’s own history and with direct peers.
Is my data uploaded?
No. The figures stay in your browser. Results are for information only, not investment, credit or accounting advice.