Finance Tool

Financial Ratios Calculator

Enter income statement and balance sheet data to compute 20+ key financial ratios. Covers liquidity, profitability, leverage, efficiency, valuation, and cash flow.

Financial Data

All values in same currency unit (e.g. thousands, millions)

Income Statement

Revenue

Gross Profit

EBIT (Operating Profit)

EBITDA

Net Income

Interest Expense

D&A (Depreciation & Amortization)

Balance Sheet

Current Assets

Inventory

Trade Receivables

Cash & Equivalents

Total Assets

Current Liabilities

Total Financial Debt

Total Liabilities

Shareholders' Equity

Retained Earnings

Market & Cash Flow

Market Capitalization

Operating Cash Flow

Capital Expenditures (Capex)

Liquidity Ratios

Current Ratio

Current Assets / Current Liabilities. Ability to cover short-term obligations.

Benchmark: Good: >1.5x | Caution: <1.0x

1.75

Healthy

Quick Ratio (Acid-Test)

(Current Assets – Inventory) / Current Liabilities. More conservative than current ratio.

Benchmark: Good: >1.0x | Caution: <0.7x

1.35

Healthy

Cash Ratio

Cash & Equivalents / Current Liabilities. Most conservative liquidity measure.

Benchmark: Good: >0.5x | Caution: <0.2x

0.30

Monitor

Profitability Ratios

Gross Margin

Gross Profit / Revenue. Pricing power and production efficiency.

Benchmark: SaaS >60% | Industrial 20-35% | Retail 15-25%

45.0%

Healthy

EBIT Margin (Operating Margin)

EBIT / Revenue. Operating profitability after D&A but before interest and tax.

Benchmark: Good: >15% | Weak: <5%

18.0%

Healthy

EBITDA Margin

EBITDA / Revenue. Most common M&A profitability benchmark.

Benchmark: Good: >20% | Weak: <8%

23.0%

Healthy

Net Profit Margin

Net Income / Revenue. Bottom-line profitability after all expenses.

Benchmark: Good: >10% | Weak: <3%

12.0%

Healthy

ROE (Return on Equity)

Net Income / Shareholders' Equity. Return generated for equity investors.

Benchmark: Good: >15% | Weak: <8%

20.0%

Healthy

ROA (Return on Assets)

Net Income / Total Assets. Efficiency of asset utilization.

Benchmark: Good: >8% | Weak: <3%

10.0%

Healthy

ROIC (Return on Invested Capital)

NOPAT / (Equity + Net Debt). Value creation measure vs. WACC. Assumes 25% tax rate.

Benchmark: Value creation: >WACC (~8-10%) | Good: >15%

12.9%

Monitor

Leverage & Solvency

Debt-to-Equity Ratio

Total Debt / Equity. Financial leverage — higher = more debt-dependent.

Benchmark: Conservative: <1.0x | High: >2.5x | LBOs: 4-8x

0.75

Healthy

Net Debt / EBITDA

(Total Debt – Cash) / EBITDA. Years of earnings to repay net debt.

Benchmark: Conservative: <2x | Leveraged: >4x | Distress: >6x

1.70x

Healthy

Interest Coverage Ratio

EBIT / Interest Expense. Ability to pay interest from operating profit.

Benchmark: Good: >3x | Risky: <1.5x | Default risk: <1x

6.00

Healthy

Debt-to-Assets

Total Debt / Total Assets. Proportion of assets financed by debt.

Benchmark: Conservative: <40% | High: >65%

37.5%

Healthy

Efficiency Ratios

Asset Turnover

Revenue / Total Assets. Revenue generated per unit of assets.

Benchmark: Retail >1.5x | Services >1x | Capital-intensive <0.5x

0.83

Monitor

Days Sales Outstanding (DSO)

(Receivables / Revenue) × 365. Average days to collect payment.

Benchmark: Good: <30 days | Caution: >60 days

44 days

Monitor

Days Inventory Outstanding (DIO)

(Inventory / Revenue) × 365. Days to sell through inventory.

Benchmark: Good: <30 days | Caution: >90 days (sector-dependent)

29 days

Healthy

Valuation Multiples

P/E Ratio (Price-to-Earnings)

Market Cap / Net Income. Investor willingness to pay per dollar of profit.

Benchmark: Tech: 20-40x | Consumer: 15-25x | Industrials: 10-15x

12.5

EV/EBITDA

Enterprise Value / EBITDA. The standard M&A valuation multiple.

Benchmark: SaaS: 15-30x | Consumer: 8-12x | Industrials: 5-8x | LBO entry: 6-10x

8.22x

P/B Ratio (Price-to-Book)

Market Cap / Equity. Premium paid over book value.

Benchmark: Banks: ~1x | Growth: 3-10x | Deep value: <1x

2.5

Cash Flow

Free Cash Flow (FCF)

Operating Cash Flow – Capex. Cash available for debt repayment, dividends, buybacks.

1700

Healthy

FCF Margin

Free Cash Flow / Revenue. Cash conversion efficiency.

Benchmark: Good: >10% | Weak: <3%

17.0%

Healthy

FCF Yield

Free Cash Flow / Market Cap. Cash return relative to valuation.

Benchmark: Attractive: >5% | Moderate: 2-5%

11.3%

Healthy

Note: Health indicators use general benchmarks and vary significantly by industry, company stage, and economic cycle. Ratios should be interpreted in context — a high leverage ratio in a stable utility is less concerning than in a cyclical industrial. Always cross-reference with sector peers and historical trends.