Financial Ratios Calculator
Financial ratios compare figures from the accounts: current assets of 50 000 against current liabilities of 25 000 give a current ratio of 2 : 1.
2 : 1
Step-by-step solution
- Current ratio = Current assets ÷ Current liabilities
- = 50,000.00 ÷ 25,000.00 = 2 : 1
Financial Ratios Formula
Current ratio = Current assets ÷ Current liabilities
Each ratio has its own formula; pick it to see the inputs
Worked Example
Current assets of 50 000 and current liabilities of 25 000:
- Current ratio = Current assets ÷ Current liabilities
- = 50,000.00 ÷ 25,000.00 = 2 : 1
Comparing ratios fairly
Ratios are most useful compared with the same company’s previous years and with competitors in the same industry; a current ratio of 1.2 can be healthy for a retailer and weak for a manufacturer. Use average balance-sheet figures for return ratios (ROA, ROE) when the year-start and year-end values differ a lot, and make sure profit and revenue cover the same period. One ratio rarely tells the whole story.
Frequently asked questions
What is a good current ratio?
Around 1.5 to 2 is often considered comfortable; below 1 means current liabilities exceed current assets. Norms differ by industry.
What is the difference between the current and quick ratio?
The quick (acid-test) ratio removes inventory and prepaid expenses, which cannot quickly be turned into cash, so it is a stricter test of liquidity.
How are ROA and ROE different?
ROA divides net income by average total assets (how well all assets are used); ROE divides by average shareholders’ equity (return to owners). Higher debt raises ROE relative to ROA.
Sources
Last reviewed: . Factors are stored exactly and computed with 50-digit decimal arithmetic. See how we verify conversion factors.
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APA
Scientific Converters. (2026, October 15). Financial Ratios Calculator. Retrieved October 25, 2026, from https://scientificconverters.com/calculators/financial-ratios-calculator/
IEEE
Scientific Converters, "Financial Ratios Calculator," scientificconverters.com. Accessed: Oct. 25, 2026. [Online]. Available: https://scientificconverters.com/calculators/financial-ratios-calculator/