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    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.

    Current ratio =

    2 : 1

    Step-by-step solution
    1. Current ratio = Current assets ÷ Current liabilities
    2. = 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:

    1. Current ratio = Current assets ÷ Current liabilities
    2. = 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.

    Cite this page

    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/

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