Financial Ratio Calculator
Calculate and interpret key financial ratios to evaluate business performance and financial health.
Note: Enter financial data in consistent units (e.g., thousands or millions). For percentages, enter the actual number (e.g., enter 5 for 5%).
Profitability Ratios
Measure a company's ability to generate earnings relative to sales, assets, and equity.
Results
Gross Profit Margin
-
Gross Profit ÷ Revenue
Net Profit Margin
-
Net Income ÷ Revenue
Return on Assets (ROA)
-
Net Income ÷ Total Assets
Return on Equity (ROE)
-
Net Income ÷ Shareholder's Equity
Operating Margin
-
Operating Income ÷ Revenue
Interpretation
Enter your financial data and calculate to see interpretation.
Understanding Financial Ratios
Why Financial Ratios Matter
Financial ratios provide insights into a company's operational efficiency, financial health, and overall performance. They help investors, creditors, and management make informed decisions by analyzing relationships between different financial statement items.
How to Use This Calculator
- Select the ratio category you want to analyze (Profitability, Liquidity, etc.)
- Enter the required financial data from your balance sheet, income statement, or cash flow statement
- Click "Calculate" to generate the ratios and their interpretations
- Review the results and use them for financial analysis and decision-making
Tips for Analysis
- Compare ratios to industry benchmarks for meaningful insights
- Track ratios over time to identify trends and patterns
- Use multiple ratio categories for a comprehensive financial analysis
- Consider both quantitative data and qualitative factors in your assessment