Business financial ratios
Ratios sum up your company's health in a few figures. Enter your balance sheet and income statement figures and see what each one says.
Current ratio
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Quick ratio
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Cash ratio
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Working capital
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Debt-to-equity
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Net margin
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Return on equity (ROE)
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How it is calculated
- Current ratio = current assets ÷ current liabilities. Quick ratio = (current assets − inventory) ÷ current liabilities. Cash ratio = cash ÷ current liabilities.
- Working capital = current assets − current liabilities. Debt-to-equity = total debt ÷ equity.
- Net margin = profit ÷ sales. ROE = profit ÷ equity.
Assumptions
- Figures from the same balance sheet date and the same year's results.
- There are no universal “good” values: compare them with your sector and your previous years.