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Industrial Finance
Financial Ratios Calculator (Liquidity & Leverage)
In short: financial ratios turn balance-sheet figures into a diagnosis of short-term health and debt load. This calculator computes the liquidity ratios (current, quick, cash, general liquidity) and leverage ratios (debt-to-equity, debt ratio, equity multiplier, times interest earned) from one input set, and colours each against healthy-watch-weak bands.
The key ratio formulas
Current = current assets ÷ current liabilities • Quick = (current assets − inventory) ÷ current liabilities • Debt-to-equity = total debt ÷ equity • Times interest earned = EBIT ÷ interest.
Financial ratios turn the raw numbers on a company balance sheet and income statement into a diagnosis. A pile of figures, current assets, liabilities, debt, equity, profit, is hard to interpret on its own; but the relationships between them, expressed as ratios, reveal at a glance whether a business can pay its short-term bills, how heavily it leans on debt, and how comfortably it can service that debt.
This calculator computes the two families of ratios most often read from the balance sheet: liquidity ratios (the current ratio, quick or acid-test ratio, cash ratio, and the general liquidity ratio used in Brazil) and leverage ratios (debt-to-equity, the debt ratio, the equity multiplier, and times interest earned).
It reports them all from one set of inputs, colours each against common healthy-watch-weak bands, and charts the liquidity ratios against the crucial 1.0 line, so instead of hunting for one ratio at a time you get the whole short-term-health and debt picture in a single view, ready to compare against a company own history and its industry peers.
What financial ratios tell you
The power of a ratio is standardisation. A company with a million in current assets and one with a billion cannot be compared on the raw figures, but their current ratios, current assets divided by current liabilities, are directly comparable, because the ratio removes scale and leaves only the relationship.
This is why ratios are the common language of financial analysis: they let you track a single company over time, benchmark it against competitors of any size, and spot trends and outliers that absolute numbers hide. The ratios in this tool answer two distinct questions. Liquidity ratios ask whether the company can meet its obligations as they fall due, especially in the short term, which is a question of survival and smooth operation.
Leverage ratios ask how the company is financed and how much risk its debt load carries, which is a question of solvency and resilience. Read together, they sketch the financial risk profile of a business from the balance sheet.
Liquidity: the current ratio
The current ratio is the starting point of liquidity analysis. It divides current assets, everything expected to turn into cash within a year, by current liabilities, everything due within a year, and it shows whether the company has enough near-term resources to cover its near-term obligations.
A ratio of 2.0 means twice the cover; a ratio of 1.0 means assets and liabilities are exactly matched; a ratio below 1.0 means the company owes more in the short term than it holds in short-term assets, a potential strain. The commonly cited healthy band runs from about 1.5 to 3.0: enough cushion to absorb timing mismatches without so much that the company is sitting on unproductive assets.
That band is only a guide, because the right level depends heavily on the industry, a supermarket with fast inventory turnover can run comfortably at a lower current ratio than a manufacturer, so the current ratio is best read against peers. This calculator shows it as the headline figure and colours it against the common band.
Liquidity: quick and cash ratios
The current ratio treats all current assets as equally available, but they are not, so two stricter measures refine the picture. The quick ratio, or acid-test, removes inventory from current assets before dividing by current liabilities, because inventory can be slow to sell and may fetch less than its book value in a hurry; a quick ratio near 1.0 means the company can cover its short-term obligations without relying on selling stock.
The cash ratio goes further still, counting only cash and equivalents, and asks whether the company could pay its current liabilities immediately; it is usually well below 1.0 and has no universal target, serving mainly as a stress test of instant solvency. Reading the three together is more revealing than any one alone: a healthy current ratio but a weak quick ratio signals heavy dependence on inventory, while a solid cash ratio signals real short-term resilience.
This calculator computes all three from the most inclusive to the strictest, so the layers of liquidity are visible at once.
The general liquidity ratio
Widely used in Brazil and elsewhere in Latin America, the general liquidity ratio broadens the lens beyond the short term. It equals current assets plus long-term receivables, divided by current liabilities plus non-current liabilities, and it measures whether all the company realisable assets, short and long term, could cover all its obligations, short and long term.
Where the current ratio looks only at the coming year, general liquidity takes in the whole balance sheet, giving a fuller view of solvency over the medium and long run. A value above 1.0 indicates that total realisable assets exceed total liabilities, a favourable position.
Because it requires long-term figures that the basic liquidity ratios do not, this calculator treats the long-term receivables and non-current liabilities as optional inputs and computes the general liquidity ratio only when you supply them, so the tool serves both a quick current-ratio check and a fuller balance-sheet analysis in the Brazilian style.
Leverage: debt-to-equity
Turning from liquidity to leverage, the debt-to-equity ratio is the headline measure of how a company is financed. It divides total debt by shareholders equity, showing the balance between borrowed money and owners capital. A debt-to-equity of 1.0 means the two are equal; below 1.0 the company leans on equity and is more conservatively financed; well above 1.0 it is aggressively leveraged, which amplifies returns when things go well and losses when they do not.
Debt is a double-edged tool: it is usually cheaper than equity and its interest is tax-deductible, so a measured amount can lift returns, but too much raises the risk of distress if earnings falter. There is no universal right level, capital-intensive and financial businesses carry far more debt than asset-light ones, so the ratio must be judged against industry norms and the stability of the company cash flows.
This calculator flags roughly at-or-below 1.0 as comfortable and well above 2.0 as high, as a first read.
Leverage: debt ratio and equity multiplier
Two further leverage measures round out the balance-sheet view. The debt ratio divides total debt by total assets, showing what fraction of everything the company owns is funded by debt rather than equity; a debt ratio of 0.4 means forty percent of assets are debt-financed, and values above roughly 0.6 to 0.7 indicate heavy reliance on borrowing.
The equity multiplier divides total assets by equity, showing how many units of assets the company controls for each unit of owners capital; a higher multiplier means more of the asset base rests on liabilities, which is simply another expression of higher leverage. These three, debt-to-equity, the debt ratio, and the equity multiplier, are mathematically linked and always tell a consistent story, so seeing them side by side reinforces the reading and guards against over-interpreting any single one.
This calculator presents all three together, colouring debt-to-equity and the debt ratio against their healthy bands while showing the equity multiplier as context.
Coverage: times interest earned
Leverage is only half the risk story; the other half is whether the company can comfortably pay the interest on its debt, which is what the times-interest-earned or interest-coverage ratio captures. It divides operating profit, EBIT, by interest expense, showing how many times over profit could cover the interest bill. A coverage of 8.0 means a wide cushion; a coverage near 1.0 means profit barely covers interest, leaving no room for a downturn.
As a guide, coverage above about 3.0 is healthy and below about 1.5 is a warning. Crucially, coverage puts the balance-sheet leverage ratios in perspective: a company can safely carry a high debt-to-equity if its earnings cover interest many times over, while a company with modest debt but thin coverage may be more fragile than the balance sheet alone suggests.
Because it draws on the income statement, this calculator treats EBIT and interest expense as optional inputs and computes times interest earned only when both are provided, linking the debt level to the ability to service it.
Five worked examples of the balance-sheet ratios
Example 1: the current ratio
Current assets are 200,000 and current liabilities 100,000. Current ratio = 200,000 ÷ 100,000 = 2.0. The firm holds two dollars of short-term assets for every dollar of short-term debt — a healthy liquidity cushion.
Example 2: the quick (acid-test) ratio
Strip out 80,000 of inventory: quick assets are 120,000. Quick ratio = 120,000 ÷ 100,000 = 1.2. Excluding inventory, the firm still covers current liabilities, which is reassuring for a business with slow-moving stock.
Example 3: the cash ratio
Cash and equivalents are 40,000. Cash ratio = 40,000 ÷ 100,000 = 0.4. Only 40% of current liabilities could be paid from cash today — normal for many firms, since they also rely on receivables turning to cash.
Example 4: the debt-to-equity ratio
Total debt is 400,000 and equity 600,000. D/E = 400,000 ÷ 600,000 = 0.67. There is 67 cents of debt for every dollar of equity — a moderate, generally comfortable level of financial leverage.
Example 5: the times-interest-earned ratio
EBIT is 160,000 and interest expense 20,000. TIE = 160,000 ÷ 20,000 = 8.0. Operating profit covers interest eight times over, a strong margin of safety for servicing the debt.
Three expert tips for reading the ratios
Judge against the industry, not an absolute
A “good” current ratio for a supermarket differs from one for a machine shop. Compare each ratio with sector peers and the company’s own history, not a single textbook threshold.
Read liquidity and leverage together
Strong liquidity with heavy leverage, or the reverse, tells a fuller story than either alone. A high D/E is far less worrying when TIE is high and the current ratio is comfortable.
Beware a ratio that is too high
A current ratio well above the peer norm can signal idle cash, bloated inventory, or uncollected receivables. Ratios describe balance, not “more is always better” — both extremes deserve a second look.
How the ratios connect
The ratios in this tool are not independent trivia; they interlock into a single picture of financial risk. The liquidity ratios describe whether the company can survive the short term, and they nest inside one another, current, then quick, then cash, from the most generous view of available assets to the strictest. The leverage ratios describe how the company is financed, and they are algebraically related, so debt-to-equity, the debt ratio, and the equity multiplier move together.
Times interest earned then bridges the two worlds, connecting the debt level on the balance sheet to the earnings on the income statement that must service it. A complete read moves across all of them: strong liquidity and low leverage with high coverage is a low-risk profile; weak liquidity or high leverage with thin coverage is a fragile one; and mixed signals, say healthy leverage but poor liquidity, point to exactly where to dig deeper.
Presenting the ratios together, rather than one at a time, is what lets this pattern emerge.
Reading ratios in context
A ratio in isolation is nearly meaningless; its value comes from comparison. There are three comparisons that matter. The first is against the company own history: a current ratio of 1.4 is reassuring if it has been rising from 1.0 and worrying if it has been falling from 2.5, so trends over several periods reveal direction that a single snapshot hides.
The second is against industry peers: acceptable leverage and liquidity vary enormously across sectors, and a debt ratio that is alarming for a software company may be normal for a utility, so a ratio should be benchmarked against comparable businesses rather than an absolute ideal. The third is against the structure of the business itself: a company with stable, contracted cash flows can safely carry more debt and less liquidity than one with volatile earnings.
The colour bands in this calculator are a useful first read, but they are deliberately generic; the real judgment comes from placing each ratio in these three contexts, which the tool encourages by making the whole panel easy to compute repeatedly for different periods and companies.
Where financial ratios sit in the industrial-finance toolkit
Financial ratios draw the diagnostic layer of this silo together. The leverage ratios describe the capital structure, the same debt-and-equity mix that drives the weighted average cost of capital in the WACC calculator, which in turn takes its cost of equity from the CAPM calculator; a company debt-to-equity here and its WACC there are two views of the same financing decision. The interest-coverage ratio connects to the loan amortization calculator, since the interest a company must cover is exactly the interest portion of its debt service.
And the whole panel complements the return and value tools, the ROI/ROIC calculator and the EVA calculator, by adding the risk dimension to the return picture: a business creating value through a high ROIC is more impressive, and more durable, if its liquidity is sound and its leverage moderate.
Read across the silo, the tools move from how a business is financed and what that costs, through what it earns and the value it creates, to the financial-health check these ratios provide, giving a rounded view built from one consistent set of figures.
Common mistakes to avoid
Several errors recur when people use financial ratios. The first is judging a ratio against a universal ideal rather than against industry peers and the company own history, when the healthy range for almost every ratio is industry-specific. The second is mixing definitions, for instance building a debt-to-equity on interest-bearing debt for one company and on total liabilities for another, which makes the two incomparable; pick one definition and apply it consistently.
The third is reading a single ratio in isolation when the ratios are most informative together, a healthy current ratio can hide a weak quick ratio, and a modest debt level can hide thin interest coverage. The fourth is treating a point-in-time balance sheet as the whole truth, when balances can be managed around reporting dates and trends over time are more revealing. And the fifth is confusing liquidity with solvency: a company can be liquid in the short term yet over-leveraged over the long term, or vice versa, which is why both families of ratios matter.
This calculator computes the figures exactly and flags the common bands, but these interpretive judgments are yours.
Liquidity versus solvency
A distinction worth drawing clearly is the one between liquidity and solvency, because the two are easy to conflate and the ratios in this tool address both. Liquidity is about the short term: can the company meet the bills coming due in the next weeks and months? It is measured by the current, quick, and cash ratios, all of which compare short-term assets against short-term obligations.
Solvency is about the long term: does the company own more than it owes overall, and can it survive as a going concern? It is measured by the leverage ratios, debt-to-equity, the debt ratio, and, in the broader view, general liquidity, together with the coverage that interest coverage provides. The two can diverge in revealing ways. A company can be liquid but insolvent, flush with short-term cash yet buried under long-term debt it cannot ultimately repay; or solvent but illiquid, rich in long-term assets and equity yet unable to find the cash for this month payroll.
A sound business needs both, and reading the liquidity ratios alongside the leverage ratios, exactly as this calculator presents them, is how you check for each. Confusing the two, or checking only one, is how apparently healthy companies surprise their owners.
Where these ratios fit among the other families
Liquidity and leverage are two of the standard families of financial ratios, and it helps to see where they sit among the others so you know what this tool does and does not cover.
Profitability ratios, such as net margin and return on assets or equity, measure how much profit the business generates from its sales, assets, or capital; efficiency or activity ratios, such as inventory turnover and days sales outstanding, measure how well the company uses its assets and manages its working capital; and market ratios, such as the price-to-earnings ratio, relate the share price to fundamentals for listed companies.
This calculator concentrates on liquidity and leverage because they are the families read most directly from the balance sheet and because they capture financial risk, the ability to pay and the burden of debt, which is the first thing to check about any business. The return side of the picture is covered by the ROI, ROA, and ROIC calculator elsewhere in this silo, and the working-capital efficiency side by the cash conversion cycle calculator, so the family this tool omits is available nearby. A full analysis draws on all of them, but liquidity and leverage are the natural place to start.
The limits of a single balance sheet
Every ratio in this tool is computed from balance-sheet figures taken at a single moment, and that carries a caveat worth keeping in mind. A balance sheet is a snapshot on the reporting date, and the figures on that date can differ from the company typical position during the year, sometimes deliberately.
The practice known as window dressing, timing transactions so the balance sheet looks stronger on the reporting date than it usually is, can flatter liquidity and leverage ratios: paying down short-term debt just before the period end lifts the current ratio, only for it to be drawn again afterward.
Even without any manipulation, seasonal businesses naturally show very different balances at different times of year, so a single year-end ratio may not represent the norm. The defences are the same ones good analysts always use: look at the trend across several periods rather than one date, compare against the pattern for the industry, and, where possible, use average balances rather than a single point.
None of this diminishes the value of the ratios; it simply means a single snapshot is a starting point, not the last word, and that recomputing the panel across several periods, which this calculator makes quick, is what turns a snapshot into a reliable read.
Who uses these ratios, and how
Liquidity and leverage ratios are read by almost everyone with a stake in a business, each for a slightly different purpose, and knowing the audience clarifies why the ratios matter.
Lenders and banks look at them before extending credit: a strong current ratio and comfortable interest coverage reassure a lender that the borrower can service and repay a loan, and loan agreements often contain covenants requiring the borrower to keep certain ratios within agreed limits, breaching which can trigger penalties or default.
Suppliers check liquidity before offering trade credit, since a weak current ratio warns that invoices might be paid slowly. Investors use both families to gauge the financial risk that sits behind the returns, since a high return earned on a fragile balance sheet is worth less than the same return earned on a sound one.
Managers track the ratios internally as an early-warning system, watching for a drifting current ratio or a creeping debt load before it becomes a crisis, and to stay within any covenants their lenders have imposed. And analysts and credit-rating agencies fold them into the scores and recommendations that move markets.
For every one of these users the workflow is the same: compute the ratios, read them against history and peers, and act on the trend, which is exactly what this calculator is built to support.
A quick practical checklist
To turn the panel into a fast, repeatable check, a simple sequence works well. Start with the current ratio for a first read of short-term health, then look at the quick ratio to see how much of that liquidity depends on inventory; a wide gap between the two is a flag to investigate. Glance at the cash ratio only if immediate solvency is a concern. Move to the leverage side and read the debt-to-equity and debt ratio together for the overall debt load, remembering to judge them against the industry rather than an absolute.
Finally, if you have the income-statement figures, check interest coverage, because a comfortable coverage can justify a higher debt load and a thin coverage undercuts an otherwise modest one.
Then step back and ask the three context questions: how do these compare with the company own recent history, with its industry peers, and with the stability of its cash flows? Running that sequence takes a minute with this calculator, and doing it consistently, period after period, is what builds a real feel for a company financial health rather than a one-off impression.
Why ratios beat raw numbers
It is worth stating plainly why analysts reach for ratios at all rather than reading the statements directly, because the answer explains how to use this tool well. Raw financial figures are almost impossible to judge in isolation: is a company with 400,000 of debt heavily borrowed or barely leveraged? The number alone cannot say, because it depends entirely on how much equity and how many assets sit behind it.
A ratio supplies that missing context by pairing the figure with the right denominator, so 400,000 of debt against 600,000 of equity becomes a debt-to-equity of 0.67, a number that immediately means something and can be compared to any other company.
This is why ratios, not raw amounts, are the language of financial analysis, and why a calculator that computes a whole panel of them at once is more useful than one that returns a single figure.
The discipline the ratios impose, always comparing one number against a meaningful base, is also a habit of thought worth carrying beyond this tool: whenever a financial figure seems alarming or reassuring on its own, the first question to ask is against what, and the ratio is the answer. Used this way, the panel here is not just a set of outputs but a small training in reading a business the way an analyst does.
Frequently asked questions
What are financial ratios?
Financial ratios are simple comparisons between two figures from a company financial statements that reveal something about its health, performance, or risk that the raw numbers alone do not. Dividing one balance-sheet or income-statement item by another turns absolute amounts into a standardised measure that can be compared over time and across companies of different sizes.
This calculator focuses on two of the most important families computed from the balance sheet: liquidity ratios, which measure the ability to pay short-term obligations, and leverage ratios, which measure how much debt a company carries and how easily it can service it.
It computes the current ratio, quick ratio, cash ratio, and general liquidity, plus debt-to-equity, the debt ratio, the equity multiplier, and times interest earned, and it colours each result against common healthy-watch-weak bands so you can read the diagnosis at a glance.
What is the current ratio?
The current ratio is the most widely used liquidity measure. It equals current assets divided by current liabilities, and it answers a basic question: does the company have enough short-term assets to cover the obligations coming due within a year? A current ratio of 2.0, for example, means the company has two units of current assets for every unit of current liabilities.
As a rule of thumb, a current ratio between about 1.5 and 3.0 is considered healthy: comfortably above 1.0 means the company can meet its short-term bills, while a very high ratio may signal idle assets that could be put to better use. A ratio below 1.0 means current liabilities exceed current assets, a possible liquidity strain.
The right level varies by industry, so the current ratio is best read alongside peers, but this calculator flags the common bands to give you an immediate sense of where a company stands.
What is the quick ratio (acid-test)?
The quick ratio, also called the acid-test ratio, is a stricter version of the current ratio. It equals current assets minus inventory, divided by current liabilities. The reason for removing inventory is that inventory is often the least liquid current asset: it may take time to sell and convert to cash, and in a crunch it might have to be discounted heavily.
By excluding it, the quick ratio measures whether a company can meet its short-term obligations using only its more liquid assets, cash, marketable securities, and receivables. A quick ratio around 1.0 is generally considered healthy, meaning the company could cover its current liabilities without selling inventory.
Because inventory weight varies enormously by industry, the gap between the current ratio and the quick ratio is itself informative: a large gap signals a business that is heavily dependent on inventory, which this calculator makes easy to see by showing both ratios together.
What is the cash ratio?
The cash ratio is the most conservative liquidity measure of all. It equals cash and cash equivalents divided by current liabilities, ignoring receivables and inventory entirely, and it asks whether a company could pay off all its current liabilities immediately using only the cash it has on hand.
Because it strips out every current asset except the most liquid, the cash ratio is usually well below 1.0 even for healthy companies, and there is no universal target; a very high cash ratio can even indicate that a company is holding more cash than it needs rather than deploying it. It is most useful as a stress-test measure of immediate solvency and for companies where receivables and inventory are unreliable.
This calculator reports it alongside the current and quick ratios so you can see the full liquidity picture from the most inclusive measure down to the strictest.
What is the debt-to-equity ratio?
The debt-to-equity ratio is the headline leverage measure. It equals total debt divided by shareholders equity, and it shows how much of the company financing comes from borrowing relative to what the owners have invested.
A debt-to-equity of 1.0 means debt and equity are equal; below 1.0 means the company relies more on equity, which is generally more conservative; and a high ratio means the company is aggressively financed with debt, which magnifies both returns and risk. There is no single correct level, because capital-intensive industries and financial firms naturally carry more debt than asset-light businesses, so the ratio is best judged against industry norms.
As a broad rule of thumb this calculator treats a debt-to-equity at or below about 1.0 as comfortable and well above 2.0 as high, but the meaningful comparison is always against comparable companies and the stability of the company cash flows.
What is the debt ratio and the equity multiplier?
The debt ratio and the equity multiplier are two more views of leverage from the balance sheet. The debt ratio equals total debt divided by total assets, showing what fraction of the assets is financed by debt; a debt ratio of 0.4 means 40 percent of assets are funded by borrowing and the rest by equity. Lower is generally safer, and a debt ratio above roughly 0.6 to 0.7 signals heavy reliance on debt.
The equity multiplier equals total assets divided by equity, and it measures how many units of assets the company controls for each unit of equity; a higher multiplier means more leverage, since more of the asset base is funded by liabilities rather than equity.
The three leverage measures, debt-to-equity, debt ratio, and equity multiplier, are algebraically related and tell a consistent story from different angles, which is why this calculator shows them together rather than in isolation.
What is times interest earned?
Times interest earned, or the interest coverage ratio, moves from the balance sheet to the income statement to answer a different leverage question: not how much debt a company has, but how comfortably it can service it. It equals earnings before interest and taxes, EBIT, divided by interest expense, and it shows how many times over the company operating profit could cover its interest bill.
A times-interest-earned of 8.0, for example, means operating profit is eight times the interest due, a comfortable cushion. As a rough guide a coverage above about 3.0 is considered healthy and below about 1.5 is a warning sign, because a company earning barely more than its interest has little margin for a downturn.
Because it captures the ability to pay, times interest earned complements the balance-sheet leverage ratios: a company can carry substantial debt safely if its coverage is strong, which is why this calculator computes it whenever you supply EBIT and interest.
How do I read the colour bands?
To make the ratios easy to interpret, this calculator colours each result green, amber, or red against common rule-of-thumb bands: green for a healthy value, amber for a level that warrants watching, and red for a weak value that may signal risk.
For the liquidity ratios, higher is generally better, so a current ratio at or above about 1.5 shows green; for the leverage ratios such as debt-to-equity and the debt ratio, lower is safer, so those turn green when they are comfortably low. The bands are deliberately simple rules of thumb, not hard thresholds, because the healthy range for almost every ratio depends on the industry, the business model, and the stability of cash flows.
Treat the colours as a first read that flags where to look, then compare against industry peers and the company own history for a proper judgment. The colours make the panel scannable; the context makes it meaningful.
Should I use total debt or total liabilities?
Leverage ratios can be built with either interest-bearing debt or total liabilities in the numerator, and both are common, so the important thing is to be consistent and know which you are using. Interest-bearing debt, loans and bonds, gives a narrower measure focused on borrowed money that carries interest, and it is the more common choice for the debt-to-equity ratio in investment analysis.
Total liabilities, which also include items such as accounts payable and accrued expenses, gives a broader measure of everything the company owes and is often used for the debt ratio.
This calculator accepts whichever figure you enter in the total-debt field, so you can compute the version you need; just apply the same definition consistently when comparing companies or periods, since a debt-to-equity built on total liabilities is not comparable to one built on interest-bearing debt alone. The label in the input notes both options so you can choose deliberately.
Does this calculator store the numbers I enter?
No. The calculator runs entirely in your browser. The balance-sheet and income-statement figures you enter are never sent to our servers, stored, or shared. You can use it freely for confidential figures. See our Privacy Policy for details.
Is the financial ratios calculator free to use?
Yes. This calculator, like every tool on OpsCalculators, is free and needs no account or sign up. There is no paywall and no limit on how many calculations you can run, and you can change the inputs as often as you like to test different balance-sheet scenarios.
Which balance-sheet figures do I need?
For the core liquidity and leverage panel you need a handful of figures from the balance sheet: current assets, inventory, cash and equivalents, and current liabilities for the liquidity ratios; and total assets, total debt, and equity for the leverage ratios. To add times interest earned you also need two income-statement figures, operating profit (EBIT) and interest expense, which are optional.
Two further optional inputs, long-term receivables and non-current liabilities, unlock the general liquidity ratio widely used in Brazil, which broadens the current ratio to include long-term items. Everything except current assets and current liabilities can be left at zero or blank if you only want a subset of the ratios; the calculator simply omits any ratio it cannot compute.
This makes the tool useful whether you have a full set of statements or just the few figures needed for a quick liquidity check.
Related industrial finance calculators
More tools in this silo. Return to the Industrial Finance hub for the full set.
Sources, disclaimer and editorial transparency
Method follows the standard treatment of liquidity and leverage ratios in financial-statement analysis, including the texts by Brealey, Myers and Allen and by Damodaran, and the definitions used by the CFA Institute and the Corporate Finance Institute. Rule-of-thumb bands are general guides, not hard thresholds. See our Editorial Policy for how we research and review each tool.
This calculator is for education and planning and does not constitute financial, tax, or investment advice. Confirm any figure that informs a real decision with a qualified professional. OpsCalculators is operated by MAFHH INTERNATIONAL LTD; see our Privacy Policy.