Financial Ratio Analyzer
Analyze key financial ratios and metrics
What is Financial Ratio Analyzer?
The Financial Ratio Analyzer is a free online tool that calculates the key ratios used to judge a company's performance and health. You enter figures from the financial statements — net income, revenue, cost of goods sold, operating income, interest expense, total assets, equity, debt, current assets, current liabilities, inventory, cash, receivables, market price, earnings per share, book value per share, and dividend per share — and the tool instantly computes ratios grouped into six areas. Profitability covers ROE, ROA, ROI and the gross, operating, and net margins; liquidity covers the current ratio, quick ratio, cash ratio, and working capital; leverage and solvency cover debt-to-equity, the debt ratio, the equity ratio, and interest coverage; efficiency covers inventory, receivables, and asset turnover plus days sales outstanding; and valuation covers the P/E ratio, P/B ratio, EPS, and dividend yield. Each ratio appears with a short description of what it measures, and only ratios whose inputs you supply are computed. Everything runs instantly in your browser with no signup.
How to use Financial Ratio Analyzer?
Analyzing a company takes only a few minutes:
- 1 Enter the income-statement inputs — net income, revenue, cost of goods sold, operating income, and interest expense — to drive the profitability margins and interest coverage.
- 2 Add the balance-sheet figures: total assets, total equity, total debt, current assets, current liabilities, inventory, cash, and receivables for the liquidity, leverage, and efficiency ratios.
- 3 Enter the per-share data — market price, earnings per share, book value per share, and dividend per share — so the tool can compute the valuation ratios.
- 4 Read the results: profitability, liquidity, leverage/solvency, efficiency, and valuation ratios all update instantly, each with a description so you can interpret the numbers without memorizing the formulas.
Why use this tool?
Raw financial statements are hard to compare across companies or over time, but ratios turn them into standardized measures. Return ratios such as ROE and ROA and the profit margins show how efficiently a business turns sales and capital into profit; liquidity ratios reveal whether it can meet short-term obligations; leverage and solvency ratios show how much it relies on debt and whether earnings cover interest; efficiency ratios such as inventory and asset turnover reveal how hard the assets work; and valuation ratios like P/E and P/B frame its market price. Seeing all of them together gives a rounded picture that a single number cannot. This is valuable for investors screening stocks, owners tracking performance, and students learning analysis. Because the calculation runs locally in your browser, your figures are never uploaded, so you can analyze sensitive data privately.
Examples
With $50,000 net income, $200,000 equity, and $300,000 assets, the tool shows a 25% ROE and a roughly 16.7% ROA, and a $350,000 cost of goods sold on $500,000 revenue gives a 30% gross margin.
Enter $150,000 current assets and $75,000 current liabilities to see a current ratio of 2.0 and $75,000 of working capital, and add $40,000 cash for a cash ratio of about 0.53.
A market price of $25 with earnings per share of $2.50 produces a P/E ratio of 10, while a $12.50 book value per share gives a P/B of 2.0 and a $1.00 dividend yields 4%.
Frequently Asked Questions
Is the Financial Ratio Analyzer free?
Yes. It is completely free, with no signup, no limits, and no account required. You can analyze as many sets of figures as you like.
What does ROE mean?
Return on equity (ROE) is net income divided by shareholder equity. It measures how much profit a company generates for every unit of equity invested by its owners.
What is the difference between the current ratio and the quick ratio?
The current ratio compares all current assets to current liabilities, while the quick ratio excludes inventory, giving a stricter test of whether a company can pay short-term debts without selling stock. The cash ratio is stricter still, counting only cash and equivalents.
What do the efficiency ratios show?
Turnover ratios show how productively the business uses its assets: inventory turnover is cost of goods sold divided by inventory, asset turnover is revenue divided by total assets, and days sales outstanding estimates how many days it takes to collect receivables.
What is the difference between the P/E and P/B ratios?
The price-to-earnings (P/E) ratio divides the market price by earnings per share, while the price-to-book (P/B) ratio divides it by book value per share. P/E frames the price against profit; P/B frames it against net assets.
What does the debt-to-equity ratio tell me?
It compares total debt to total equity, showing how much a company relies on borrowing relative to owners' funds. A higher ratio indicates greater financial leverage and risk; interest coverage then shows whether operating income comfortably covers interest payments.
Is this investment advice?
No. The tool calculates ratios from the figures you enter. Ratios should be compared with industry benchmarks and trends, and this is not regulated investment advice.
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