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Business Financial Ratio Calculator

Compute business financial ratios: Current Ratio, Quick Ratio, DER, DAR, Net Profit Margin, ROA, and ROE — with a short meaning for each. Free.

Enter the figures you have — computable ratios appear automatically.

Not financial advice

Ratios are educational and depend on industry context. This isn't official financial advice; consult an accountant for important decisions.

Financial ratios

Current Ratio

Ability to cover short-term debt with current assets.

1,9×Healthy

Quick Ratio

Liquidity without relying on selling inventory.

1,3×Healthy

Debt to Equity (DER)

Ratio of debt to owner's equity.

0,7×Healthy

Debt to Asset (DAR)

Portion of assets financed by debt.

0,4×Healthy

Net Profit Margin

Net profit as a percent of sales.

9,0%Neutral

Return on Asset (ROA)

How efficiently assets generate profit.

15,0%Healthy

Return on Equity (ROE)

Return on owner's equity.

25,0%Healthy

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Understanding financial ratios

Liquidity ratios

Current Ratio and Quick Ratio measure the ability to cover short-term obligations. Quick Ratio is stricter as it excludes inventory that may not sell quickly.

Solvency ratios

DER (debt ÷ equity) and DAR (debt ÷ assets) show how much the business relies on debt. Too high adds risk; too low may mean underused leverage.

Profitability ratios

Net Profit Margin, ROA, and ROE measure the ability to generate profit from sales, assets, and equity. Useful to assess efficiency and returns.

FAQ

Frequently asked questions

What is the current ratio and how is it computed?

Current Ratio = current assets ÷ current liabilities. It shows the ability to cover short-term debt. A ratio ≥ 1.5 is generally healthy, though standards vary by industry.

What's the difference between ROA and ROE?

ROA = net profit ÷ total assets, measuring asset efficiency. ROE = net profit ÷ total equity, measuring owner return. ROE is usually higher when the business uses debt.

What's an ideal DER?

It varies by industry. DER ≤ 1 is often conservative; 1–2 is reasonable in many sectors; above that warrants attention due to high debt load. Compare with similar competitors.

Are these ratios financial advice?

No. Ratios are educational and highly context-dependent. The healthy/watch cues are general indications, not official advice. Consult an accountant for important decisions.

What data do I need?

From financial statements: balance sheet (current assets, current liabilities, inventory, total debt, assets, equity) and income statement (net profit, sales). Fill what you have; computable ratios appear.

Omsetlaris Services

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Free Financial Ratio Calculator | Omset Laris