Current Ratio Calculator
Measures a company's ability to pay short-term obligations with current assets. Higher ratio indicates better short-term financial health.
Formula: Current Ratio = Current Assets ÷ Current Liabilities
Current Assets (₹)
Current Liabilities (₹)
Result
2.00
Interpretation
A ratio of 2.0 indicates good short-term financial health.
Quick Ratio Calculator
Measures ability to meet short-term obligations with most liquid assets (excluding inventory).
Formula: Quick Ratio = (Current Assets - Inventory) ÷ Current Liabilities
Current Assets (₹)
Inventory (₹)
Current Liabilities (₹)
Result
1.40
Interpretation
Ratio above 1.0 indicates good liquidity without relying on inventory.
Current Assets to Equity Ratio
Measures the proportion of current assets financed by shareholders' equity.
Formula: Current Assets to Equity = Current Assets ÷ Shareholders' Equity
Current Assets (₹)
Shareholders' Equity (₹)
Result
0.60
Interpretation
60% of current assets are financed by equity.
Gross Profit Ratio (GP Ratio)
Measures profitability after deducting cost of goods sold from revenue.
Formula: GP Ratio = (Gross Profit ÷ Revenue) × 100
Gross Profit (₹)
Revenue (₹)
Result
40%
Interpretation
40% gross margin indicates good pricing power and cost control.
Net Profit Ratio (NP Ratio)
Measures overall profitability after all expenses including taxes and interest.
Formula: NP Ratio = (Net Profit ÷ Revenue) × 100
Net Profit (₹)
Revenue (₹)
Result
15%
Interpretation
15% net margin indicates good overall profitability.
Return on Equity (ROE)
Measures how effectively a company uses shareholders' equity to generate profits.
Formula: ROE = (Net Income ÷ Shareholders' Equity) × 100
Net Income (₹)
Shareholders' Equity (₹)
Result
25%
Interpretation
25% ROE indicates efficient use of shareholders' capital.
Return on Capital Employed (ROCE)
Measures profitability and efficiency of capital utilization.
Formula: ROCE = EBIT ÷ (Total Assets - Current Liabilities) × 100
EBIT (₹)
Total Assets (₹)
Current Liabilities (₹)
Result
20%
Interpretation
20% ROCE indicates efficient capital utilization.
Return on Common Stockholders' Equity
Measures return specifically for common stockholders after preferred dividends.
Formula: RCSE = (Net Income - Preferred Dividends) ÷ Common Equity × 100
Net Income (₹)
Preferred Dividends (₹)
Common Equity (₹)
Result
22.5%
Interpretation
22.5% return for common stockholders is strong.
Debt to Equity Ratio
Measures financial leverage by comparing total liabilities to shareholders' equity.
Formula: Debt to Equity = Total Liabilities ÷ Shareholders' Equity
Total Liabilities (₹)
Shareholders' Equity (₹)
Result
2.00
Interpretation
Ratio of 2.0 means ₹2 of debt for every ₹1 of equity.
Proprietary Ratio
Measures the proportion of total assets financed by shareholders' funds.
Formula: Proprietary Ratio = Shareholders' Equity ÷ Total Assets
Shareholders' Equity (₹)
Total Assets (₹)
Result
0.60
Interpretation
60% of assets are financed by equity.
Fixed Assets to Equity Ratio
Measures how much of fixed assets are financed by shareholders' equity.
Formula: Fixed Assets to Equity = Fixed Assets ÷ Shareholders' Equity
Fixed Assets (₹)
Shareholders' Equity (₹)
Result
0.80
Interpretation
80% of fixed assets are financed by equity.
Times Interest Earned Ratio
Measures a company's ability to meet its interest payments from operating income.
Formula: Times Interest Earned = EBIT ÷ Interest Expense
EBIT (₹)
Interest Expense (₹)
Result
6.00
Interpretation
Company can cover interest expense 6 times over.
Accounts Receivable Turnover
Measures how efficiently a company collects revenue from customers.
Formula: AR Turnover = Net Credit Sales ÷ Average Accounts Receivable
Net Credit Sales (₹)
Avg Accounts Receivable (₹)
Result
10.00
Interpretation
Company collects receivables 10 times per year.
Accounts Payable Turnover
Measures how quickly a company pays its suppliers.
Formula: AP Turnover = Total Purchases ÷ Average Accounts Payable
Total Purchases (₹)
Avg Accounts Payable (₹)
Result
6.00
Interpretation
Company pays suppliers 6 times per year.
Inventory Turnover Ratio
Measures how many times inventory is sold and replaced during a period.
Formula: Inventory Turnover = Cost of Goods Sold ÷ Average Inventory
Cost of Goods Sold (₹)
Average Inventory (₹)
Result
6.00
Interpretation
Inventory turns over 6 times per year.
Fixed Assets Turnover Ratio
Measures efficiency in using fixed assets to generate sales.
Formula: Fixed Assets Turnover = Revenue ÷ Net Fixed Assets
Revenue (₹)
Net Fixed Assets (₹)
Result
2.00
Interpretation
Each dollar of fixed assets generates ₹2 in revenue.
Assets Turnover Ratio
Measures efficiency in using all assets to generate sales.
Formula: Assets Turnover = Revenue ÷ Total Assets
Revenue (₹)
Total Assets (₹)
Result
2.00
Interpretation
Each dollar of assets generates ₹2 in revenue.
Average Collection Period
Measures average number of days to collect receivables.
Formula: Avg Collection Period = (Accounts Receivable ÷ Credit Sales) × 365
Accounts Receivable (₹)
Credit Sales (₹)
Result
36.5 days
Interpretation
Takes 36.5 days on average to collect payments.
Average Payment Period
Measures average number of days to pay suppliers.
Formula: Avg Payment Period = (Accounts Payable ÷ Purchases) × 365
Accounts Payable (₹)
Purchases (₹)
Result
60.8 days
Interpretation
Takes 60.8 days on average to pay suppliers.
Dividend Yield Ratio
Measures dividend income relative to the stock price.
Formula: Dividend Yield = (Dividend per Share ÷ Stock Price) × 100
Dividend per Share (₹)
Stock Price (₹)
Result
4.0%
Interpretation
4% dividend yield indicates good income for investors.
Dividend Payout Ratio
Measures percentage of earnings paid out as dividends.
Formula: Dividend Payout = (Dividends ÷ Net Income) × 100
Dividends (₹)
Net Income (₹)
Result
25%
Interpretation
Company pays 25% of earnings as dividends.
Earnings Per Share (EPS)
Measures profit allocated to each outstanding share of common stock.
Formula: EPS = (Net Income - Preferred Dividends) ÷ Common Shares Outstanding
Net Income (₹)
Preferred Dividends (₹)
Common Shares
Result
₹3.60
Interpretation
Each common share earns ₹3.60.
Price Earnings Ratio (P/E)
Measures stock price relative to its earnings per share.
Formula: P/E Ratio = Stock Price ÷ Earnings Per Share
Stock Price (₹)
Earnings Per Share (₹)
Result
20.00
Interpretation
Stock trades at 20 times earnings.
Operating Cost Ratio
Measures operating costs as a percentage of revenue.
Formula: Operating Cost Ratio = (Operating Costs ÷ Revenue) × 100
Operating Costs (₹)
Revenue (₹)
Result
30%
Interpretation
30% of revenue goes to operating costs.
Expense Ratio
Measures total expenses as a percentage of revenue.
Formula: Expense Ratio = (Total Expenses ÷ Revenue) × 100
Total Expenses (₹)
Revenue (₹)
Result
70%
Interpretation
70% of revenue goes to total expenses.