Financial Ratios Calculator Interactive Calculator
Profit margin, ROA, and debt-to-equity — the three ratios every business case and annual report relies on.
By the analysts at Blackridge Research
Inputs
Results
What this means
Adjust the inputs to calculate.
About the Financial Ratios Calculator
Financial ratios provide a quick and standardized way to assess a company's performance.
Profit margin, ROA, and debt-to-equity are the three most important ratios.
This calculator computes profit margin, return on assets, and debt-to-equity ratio.
Formula
Profit Margin = Net Income / Revenue × 100 | ROA = Net Income / Total Assets × 100 | D/E = Total Liabilities / Equity - PM
- — Profit Margin
- ROA
- — Return on Assets
- D/E
- — Debt-to-Equity Ratio
- NI
- — Net Income
- R
- — Revenue
- TA
- — Total Assets
- TL
- — Total Liabilities
- E
- — Equity
Profit Margin = Net Income / Revenue × 100 — measures operational efficiency.
ROA = Net Income / Total Assets × 100 — measures asset efficiency.
Debt-to-Equity = Total Liabilities / Equity — measures financial leverage.
How to use this calculator
- 1
Enter revenue
Total revenue for the period.
- 2
Enter net income
Net income for the period.
- 3
Enter total assets
Total assets at the end of the period.
- 4
Enter total liabilities
Total liabilities at the end of the period.
Example calculations
Company financial analysis
Example 1A company has $1M revenue, $100K net income, $500K assets, and $200K liabilities.
- Profit Margin:
- 10.0%
- Return on Assets:
- 20.0%
- Debt-to-Equity Ratio:
- 0.67
Interpreting your results
Profit Margin > 10%: Good profitability.
ROA > 10%: Good asset efficiency.
Debt-to-Equity < 1.0: Conservative leverage.
Debt-to-Equity > 2.0: High leverage (higher risk).
Need the market data behind this calculator?
The Financial Ratios Calculator is only as good as its inputs. Blackridge Research publishes syndicated market reports with vetted market sizes, growth rates, and competitive landscapes across 40+ industries — and builds custom studies when the shelf report doesn't exist.
Industry applications
Business
- Financial analysis: assess company performance.
- Benchmarking: compare against industry peers.
- Decision making: inform strategic decisions.
Construction
- Construction companies: assess financial health.
- Project evaluation: analyze project-level returns.
Research
- Financial analysis: standard metrics for company analysis.
- Market research: compare companies within industries.
Common mistakes to avoid
-
Comparing across industries
Financial ratios vary widely by industry. Compare to industry averages.
-
Using a single period
Trend analysis across multiple periods is more informative than a single point.
Frequently asked questions
What is a good profit margin?
It depends on the industry. 10%+ is good for most industries. 20%+ is excellent.
What is a good ROA?
Above 5% is generally acceptable. Above 10% is good. Above 15% is excellent.
What is a good debt-to-equity ratio?
Below 1.0 is conservative. 1.0-2.0 is moderate. Above 2.0 is high leverage.
Glossary
- Profit margin:
- Net income divided by revenue — a measure of operational efficiency.
- ROA:
- Return on Assets — net income divided by total assets — a measure of asset efficiency.
- Debt-to-equity:
- Total liabilities divided by equity — a measure of financial leverage.
- Financial leverage:
- The use of debt to finance assets. Higher leverage means higher risk.
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