About the Accounting Ratio Calculator
Calculate financial statement ratios covering liquidity, leverage and profitability in one place. Use current and average balance-sheet figures and the related income-statement figures.
Formula or method
Current ratio = current assets ÷ current liabilities. Quick ratio = (current assets − inventory − prepaid expenses) ÷ current liabilities. Debt-to-equity = interest-bearing debt ÷ equity. ROA = net income ÷ average assets. ROE = net income ÷ average equity. Gross and net margin use revenue as the denominator.
Worked example
With current assets of 120,000 and current liabilities of 60,000, the current ratio is 2.0. Inventory of 30,000 and prepaid expenses of 5,000 imply a quick ratio of 1.42. Net income of 30,000 over average total assets of 250,000 gives ROA of 12%.
How to use the tool
Start with the example values above, then replace each input with your own figures. The results update immediately. Review the units, denominators, and assumptions before using any number in an important decision.
Assumptions and limitations
Liquidity and leverage definitions can differ by accounting standard, analyst or industry. Ratios require consistent reporting periods and currencies. When a denominator is zero or nonpositive, this tool displays N/A rather than an invented ratio. Results are educational, not accounting advice.
Frequently asked questions
Should I use year-end or average assets for ROA and ROE?
Average assets and equity over the reporting period are usually more representative for ratios comparing a period's income with balance-sheet stocks. This calculator asks explicitly for average values.
Privacy and support
Your inputs are processed locally in your browser. ToolMosaic does not upload or store the values you enter in this tool. Our tools are free, and we appreciate your support.