Current ratio, quick ratio, debt-to-equity, ROE and ROA from balance sheet and income statement figures. Free.
Fill only what you have. Each ratio appears when the numbers it needs are filled in.
Enter figures from your balance sheet and income statement.
NinjaFunction's Financial Ratios Calculator works out the current ratio, quick ratio, debt-to-equity ratio, return on equity and return on assets from a company's figures. Fill in what you have and each ratio appears when its inputs are complete. A short guide explains what each one shows. It runs in your browser.
| Ratio | Formula | What it tells you |
|---|---|---|
| Current ratio | Current assets ÷ Current liabilities | Can it pay bills due this year? |
| Quick ratio | (Current assets − Inventory) ÷ Current liabilities | Can it pay without selling stock? |
| Debt-to-equity | Total debt ÷ Equity | How much does it borrow compared with owners' money? |
| ROE | Net income ÷ Equity × 100 | Profit earned on owners' money |
| ROA | Net income ÷ Total assets × 100 | Profit earned on everything owned |
A company has current assets of 500, of which 200 is inventory, and current liabilities of 250. Its debt is 300, equity 600, total assets 1,200 and net income 90.
Current ratio: 500 ÷ 250 = 2.0. Quick ratio: (500 − 200) ÷ 250 = 1.2. Debt-to-equity: 300 ÷ 600 = 0.5. ROE: 90 ÷ 600 = 15%. ROA: 90 ÷ 1,200 = 7.5%. Together they describe a firm that can pay its short-term bills, borrows moderately and earns a decent return.
Current assets divided by current liabilities. It shows whether a company can pay the bills due within a year from the assets it expects to turn into cash in that time. A result below 1 means short-term bills are larger than short-term assets.
It removes inventory from current assets first, since stock can be slow to sell. (Current assets − Inventory) ÷ Current liabilities shows whether the business could pay its short-term bills without selling any stock.
Total debt divided by shareholders' equity. A result of 0.5 means the company owes 50 for every 100 of the owners' money. Higher figures mean more reliance on borrowing and more risk if profits fall.
Return on equity is net income divided by equity: the profit earned on the owners' money. Return on assets is net income divided by total assets: the profit earned on everything the company owns, however it was financed.
Because equity can be small. A firm with heavy debt and little equity can show a large ROE even with modest profits. Read ROE alongside debt-to-equity.
Only rough guides, and they differ by industry. A current ratio between 1.5 and 2 is often seen as comfortable, a quick ratio of 1 or more as safe, but a supermarket and a software firm are very different. Compare with similar firms.