Financial Ratios Calculator
A fast health check of liquidity and leverage.
Your numbers
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Your results
Current ratio
Current ratio
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Quick ratio
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Working capital
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Debt-to-equity
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Financial Ratios Calculator by TheCalcTools
How the Financial Ratios Calculator works
Enter figures from the balance sheet.
Current and quick ratios compare liquid assets with short-term obligations.
Debt-to-equity shows how much of the business is financed by creditors versus owners.
The formula
Current ratio = current assets ÷ current liabilitiesQuick ratio = (current assets − inventory) ÷ current liabilities
Worked example
Using the default values shown in the calculator:
| Current assets | $150000 |
|---|---|
| Inventory | $40000 |
| Current liabilities | $90000 |
| Total liabilities | $200000 |
| Shareholders' equity | $250000 |
- Current ratio = 150,000 ÷ 90,000 = 1.67.
- Quick ratio = 110,000 ÷ 90,000 = 1.22.
- Debt-to-equity = 200,000 ÷ 250,000 = 0.80.
Result:
| Current ratio | 1.67 |
|---|---|
| Quick ratio | 1.22 |
| Working capital | $60,000 |
| Debt-to-equity | 0.80 |
Frequently asked questions
What is a healthy current ratio?
Often 1.5 to 2, but it depends on the industry. Below 1 means short-term obligations exceed short-term assets.
Why exclude inventory in the quick ratio?
Inventory can take time to sell, so the quick ratio tests whether you can pay bills from more liquid assets.
Sources and further reading
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This calculator gives estimates for information only. Check important results independently before you rely on them. See our disclaimer.