Calculate ROI, P/E ratio, liquidity ratios, profitability metrics, and more. Essential free tools for financial analysis and business performance measurement.
Financial ratios are the language of business analysis. They transform raw financial data into meaningful insights about profitability, liquidity, leverage, and efficiency.
These calculators help you analyze your own business performance, compare companies for investment decisions, prepare for bank loans, or conduct due diligence on acquisitions. Understanding these ratios is essential for any financial decision-maker.
From basic ROI calculations to complex EBITDA analysis, these tools cover the full spectrum of financial ratio analysis used by investors, analysts, and business owners.
ROI (Return on Investment) measures the profitability of an investment relative to its cost. The formula is: ROI = (Gain - Cost) / Cost x 100. For example, if you invest $10,000 and receive $15,000 back, your ROI is 50%. For investments over multiple years, use CAGR (Compound Annual Growth Rate) for annualized returns.
P/E (Price-to-Earnings) ratios vary by industry and growth rate. The S&P 500 average is around 20-25x. Growth stocks often trade at 30-50x+, while value stocks trade at 10-15x. A lower P/E may indicate undervaluation, but could also signal problems. Compare to industry peers and consider the company's growth rate (PEG ratio).
Both measure liquidity, but Quick Ratio is more conservative. Current Ratio = Current Assets / Current Liabilities. Quick Ratio = (Current Assets - Inventory) / Current Liabilities. Quick Ratio excludes inventory because it may be difficult to quickly convert to cash. A Quick Ratio above 1.0 is generally healthy.
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) measures operating profitability before financing decisions and non-cash expenses. It's commonly used in M&A valuations (EV/EBITDA multiples), comparing companies with different capital structures, and assessing ability to service debt.
Debt to Equity Ratio = Total Debt / Total Equity. A D/E of 1.0 means equal debt and equity financing. Higher ratios indicate more leverage (and risk). Industry norms vary significantly - utilities and REITs typically have higher D/E, while tech companies often have lower ratios. Compare to industry averages.
Working Capital = Current Assets - Current Liabilities. Positive working capital means a company can cover short-term obligations. The Cash Conversion Cycle (CCC) shows how long it takes to convert working capital into cash. Lower CCC is better - it means faster collection and slower payment to suppliers.