A few numbers reveal a business's health. Get its core financial ratios at a glance.
This calculator computes four core business health metrics: current ratio, debt-to-equity, net profit margin, and working capital.
The current ratio divides current assets by current liabilities to gauge short-term liquidity, with values above one meaning you can cover near-term obligations. Debt-to-equity compares total debt to total equity to show how heavily the business relies on borrowing. Net profit margin divides net income by revenue to reveal how much of each sales dollar becomes profit, and working capital is current assets minus current liabilities as a dollar cushion.
No single ratio tells the whole story, so view them as a set and compare against your industry's norms, since healthy ranges differ widely by sector. A high current ratio is not always good if it means idle cash, and some debt can be efficient rather than risky. Trends over several periods matter more than one snapshot. These figures come straight from your inputs and are only as reliable as the numbers you enter.
A ratio above one means current assets cover current liabilities, and many businesses aim for the 1.5 to 3 range, though ideal levels vary by industry.
Not always; some industries operate well with more leverage, but a high ratio means greater reliance on borrowing and more financial risk.
Net profit margin uses bottom-line income after all expenses, while gross margin only subtracts the direct cost of goods sold.
See the exact formula and a worked example on our methodology page.