Financial Ratios Analysis Calculator
Calculate key financial ratios including ROE, ROA, debt-to-equity, and profit margins
About this calculator
The Financial Ratios Analysis Calculator helps investors, analysts, and business owners evaluate company performance by computing essential financial metrics. It calculates key ratios including Return on Equity (ROE), Return on Assets (ROA), debt-to-equity ratio, and various profit margins from your financial data. These ratios provide crucial insights into profitability, efficiency, leverage, and overall financial health, enabling informed investment decisions and strategic business planning. Perfect for comparing companies within industries or tracking performance trends over time.
How to use
Enter your company's financial data including net income, total assets, shareholders' equity, total debt, and revenue into the respective fields. The calculator will automatically compute ROE, ROA, debt-to-equity ratio, gross margin, operating margin, and net profit margin. Compare results against industry benchmarks or historical performance to assess financial strength.
Frequently asked questions
What is a good ROE ratio?
Generally, an ROE of 15-20% is considered good, but it varies by industry. Higher ROE indicates efficient use of shareholder equity.
How is debt-to-equity ratio calculated?
Debt-to-equity ratio equals total debt divided by shareholders' equity. Lower ratios typically indicate less financial risk and better stability.
What's the difference between ROE and ROA?
ROE measures returns on shareholder equity, while ROA measures returns on total assets. ROE focuses on shareholder value creation.