Financial Health Check – Ratio Calculator
Use this tool to calculate key financial ratios based on your input. Enter your company’s financial data, click “Calculate Ratios”, and review the automatic interpretations below.
Enter your financial data
Current Assets
Inventory
Current Liabilities
Total Debt
Total Equity
Revenue (Sales)
Cost of Goods Sold (COGS)
Net Income
function parseVal(id) {
var v = parseFloat(document.getElementById(id).value);
return isNaN(v) ? 0 : v;
}
function formatNumber(n, decimals) {
if (!isFinite(n)) return “N/A”;
return n.toFixed(decimals);
}
function calculateRatios() {
var ca = parseVal(‘currentAssets’);
var inv = parseVal(‘inventory’);
var cl = parseVal(‘currentLiabilities’);
var debt = parseVal(‘totalDebt’);
var equity = parseVal(‘totalEquity’);
var revenue = parseVal(‘revenue’);
var cogs = parseVal(‘cogs’);
var netIncome = parseVal(‘netIncome’);
var currentRatio = cl !== 0 ? ca / cl : NaN;
var quickRatio = cl !== 0 ? (ca – inv) / cl : NaN;
var deRatio = equity !== 0 ? debt / equity : NaN;
var grossMargin = revenue !== 0 ? (revenue – cogs) / revenue * 100 : NaN;
var netMargin = revenue !== 0 ? netIncome / revenue * 100 : NaN;
var currentText = ”;
if (!isFinite(currentRatio)) {
currentText = ‘Current Ratio: N/A – please provide Current Assets and Current Liabilities.’;
} else if (currentRatio < 1) {
currentText = 'Current Ratio: ' + formatNumber(currentRatio, 2) + ' – below 1, which can indicate potential short-term liquidity pressure.';
} else if (currentRatio <= 2) {
currentText = 'Current Ratio: ' + formatNumber(currentRatio, 2) + ' – within a common comfort range for short-term liquidity.';
} else {
currentText = 'Current Ratio: ' + formatNumber(currentRatio, 2) + ' – very strong liquidity, but consider whether excess current assets are being used efficiently.';
}
var quickText = '';
if (!isFinite(quickRatio)) {
quickText = 'Quick Ratio: N/A – please provide Current Assets, Inventory and Current Liabilities.';
} else if (quickRatio < 1) {
quickText = 'Quick Ratio: ' + formatNumber(quickRatio, 2) + ' – less than 1, suggesting limited ability to cover short-term obligations without selling inventory.';
} else {
quickText = 'Quick Ratio: ' + formatNumber(quickRatio, 2) + ' – indicates a solid short-term liquidity position excluding inventory.';
}
var deText = '';
if (!isFinite(deRatio)) {
deText = 'Debt-to-Equity: N/A – please provide Total Debt and Total Equity.';
} else if (deRatio < 0.5) {
deText = 'Debt-to-Equity: ' + formatNumber(deRatio, 2) + ' – relatively low leverage, relying more on equity than debt.';
} else if (deRatio <= 2) {
deText = 'Debt-to-Equity: ' + formatNumber(deRatio, 2) + ' – moderate leverage, which may be acceptable depending on your industry and risk profile.';
} else {
deText = 'Debt-to-Equity: ' + formatNumber(deRatio, 2) + ' – high leverage, which can increase financial risk and interest burden.';
}
var grossText = '';
if (!isFinite(grossMargin)) {
grossText = 'Gross Margin: N/A – please provide Revenue and Cost of Goods Sold.';
} else {
grossText = 'Gross Margin: ' + formatNumber(grossMargin, 1) + '% – reflects how efficiently you produce or purchase what you sell. Higher is generally better for covering operating costs.';
}
var netText = '';
if (!isFinite(netMargin)) {
netText = 'Net Profit Margin: N/A – please provide Revenue and Net Income.';
} else {
netText = 'Net Profit Margin: ' + formatNumber(netMargin, 1) + '% – shows how much profit you keep from each dollar of sales after all expenses.';
}
document.getElementById('current-ratio-result').innerText = currentText;
document.getElementById('quick-ratio-result').innerText = quickText;
document.getElementById('de-ratio-result').innerText = deText;
document.getElementById('gross-margin-result').innerText = grossText;
document.getElementById('net-margin-result').innerText = netText;
document.getElementById('ratio-results').style.display = 'block';
}
Inventory
Current Liabilities
Total Debt
Total Equity
Revenue (Sales)
Cost of Goods Sold (COGS)
Net Income