Financial ratios calculator turns balance sheet line items into four standard metrics investors and lenders watch.
About this calculator
Financial ratios calculator turns balance sheet line items into four standard metrics investors and lenders watch. Enter current assets and liabilities, inventory, cash, total debt, and equity from the latest annual report or your own books.
Current ratio above 1.5 is generally healthy for Indian manufacturing. Quick ratio below 1 may signal trouble if receivables slow down. Debt-to-equity above 2 means borrowed money dominates the capital structure — common in capital-heavy sectors but risky in downturns.
Use alongside [[npv]] and [[irr]] for project returns, [[emi]] for debt service capacity, and [[income-tax]] for post-tax profit context. GST working capital impact shows up in current assets — the [[gst]] calculator helps on the tax side.
Common uses
- Retail investor screening a BSE small-cap before buying shares
- Bank loan officer checking SME liquidity for working capital loan
- CA student practicing ratio analysis on sample balance sheets
- Startup founder preparing due diligence pack for angel investors
- Comparing two suppliers
Frequently asked questions
What is a good current ratio for an Indian SME?
Between 1.5 and 2.5 is comfortable for most businesses. Below 1.0 means current liabilities exceed current assets — bills may be hard to pay without new borrowing. Above 3 may mean idle cash not deployed efficiently.
Why is quick ratio lower than current ratio?
Quick ratio excludes inventory because unsold stock cannot pay suppliers tomorrow. A trader with ₹50 lakh inventory and ₹10 lakh cash looks fine on current ratio but weak on quick ratio if sales stall.
How do I interpret debt-to-equity of 1.5?
For every ₹1 of owner equity, the company owes ₹1.50 in debt. D/E of 1.5 is moderate for Indian infra and real estate; it is high for IT services where low debt is normal.
Can I use this for listed company annual reports?
Yes. Pull current assets, current liabilities, inventory, cash, borrowings, and equity from the balance sheet in the annual report or screener.in. Use consolidated figures for group analysis.