Financial Ratios Calculator
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Full Financial Ratio Analysis
Calculate liquidity, solvency, efficiency, and profitability ratios — with industry benchmarks and trend charts.
Frequently Asked Questions
What are financial ratios used for?
Financial ratios measure a company's performance across profitability, liquidity, efficiency, and solvency. They help compare performance over time or against competitors.
How is gross profit margin calculated?
Gross Profit Margin = (Revenue − Cost of Goods Sold) ÷ Revenue × 100. It shows what percentage of revenue remains after covering direct production costs.
What is a good net profit margin?
It varies significantly by industry. Retail might average 2–5%, while software companies can exceed 20%. Compare against industry peers rather than using a universal benchmark.