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Ratio lab
Every ratio below is computed from real XBRL tags — study the formula and interpretation, then run it live on any SEC filer.
Live ratio calculator
Choose a company to explore its financial ratios.
Compare annual periods and review trends across each category.
18 ratios5 categoriesFormulas, interpretation and benchmarks
Open a ratio for its formula, explanation and benchmarks.
18 / 18 ratios
Open for detailsCash flow
In focus
Operating Cash Flow − Capital Expenditures
Cash left after maintaining and growing the asset base — the true fuel for dividends, buybacks and debt paydown.
Rule of thumb: Positive and growing is the goal.
Cash flow
In focus
Free Cash Flow ÷ Revenue
Free cash generated per revenue dollar. Combines profitability and capital intensity in one number.
Rule of thumb: >10% is excellent; capital-heavy sectors run low or negative.
Cash flow
In focus
Operating Cash Flow ÷ Net Income
The classic earnings-quality check. Persistently <1 means paper profits aren't becoming cash; ≥1 suggests conservative accruals.
Rule of thumb: ≥1× over several years = high-quality earnings.
Efficiency
In focus
Revenue ÷ Total Assets
Revenue squeezed from each asset dollar. High turnover + low margin (retail) and low turnover + high margin (luxury) can both be great models.
Rule of thumb: >1× is efficient for most sectors.
Efficiency
In focus
365 ÷ (Revenue ÷ Accounts Receivable)
Average days to collect payment from customers. Rising DSO can mean channel stuffing or weaker customers.
Rule of thumb: Lower is better; compare to payment terms.
Efficiency
In focus
Cost of Revenue ÷ Inventory
How many times inventory sells through per year. Slow turnover ties up cash and risks obsolescence.
Rule of thumb: Higher is better within an industry.
Leverage
In focus
Total Liabilities ÷ Total Assets
Share of assets financed by obligations. Above ~0.6 the balance sheet leans heavily on creditors.
Rule of thumb: 0.3–0.6 is the common range.
Leverage
In focus
Operating Income ÷ Interest Expense
How many times operating profit covers the interest bill. Below ~2×, earnings barely protect the debt load.
Rule of thumb: >5× comfortable; <2× caution.
Leverage
In focus
Total Liabilities ÷ Stockholders' Equity
How much of the firm is financed by creditors vs owners. A rising trend signals growing reliance on outside financing.
Rule of thumb: <1× conservative; banks run far higher by nature.
Liquidity
In focus
Cash & Equivalents ÷ Current Liabilities
The strictest liquidity test — only actual cash counts. Very high values can also signal idle capital.
Rule of thumb: 0.2–0.5× is typical; tech giants run far higher.
Liquidity
In focus
Current Assets ÷ Current Liabilities
Can the firm cover its next 12 months of bills with short-term resources? Below 1 means current liabilities exceed current assets.
Rule of thumb: 1.5–3× is comfortable for most industrials; retailers often run lower by design.
Liquidity
In focus
Operating Cash Flow ÷ Current Liabilities
Unlike static ratios, this uses the year's actual cash generation — can the business pay its short-term debts from operations alone?
Rule of thumb: >0.4× suggests healthy coverage.
Liquidity
In focus
(Current Assets − Inventory) ÷ Current Liabilities
Same as current ratio but strips out inventory, the least liquid current asset. Harsher test of immediate solvency.
Rule of thumb: ≥1× means liquid assets alone cover short-term debt.
Profitability
In focus
(Revenue − Cost of Revenue) ÷ Revenue
What remains after direct production costs. Tracks pricing power and input-cost pressure. Compare within an industry only.
Rule of thumb: Software >70%; grocery retail <30%.
Profitability
In focus
Net Income ÷ Revenue
The bottom line: profit per revenue dollar after everything. Watch the gap vs operating margin — it reveals financing and tax effects.
Rule of thumb: Varies widely; compare to sector peers.
Profitability
In focus
Operating Income ÷ Revenue
Profit from core operations before interest and tax — the cleanest read on how well the business itself is run.
Rule of thumb: 10–20% is solid; elite firms exceed 30%.
Profitability
In focus
Net Income ÷ Total Assets
How hard the asset base works. Capital-light businesses (software) post much higher ROA than airlines or utilities.
Rule of thumb: >5% decent, >10% strong.
Profitability
In focus
Net Income ÷ Stockholders' Equity
Return generated on shareholders' capital. High ROE driven by heavy leverage is riskier than ROE driven by margins.
Rule of thumb: 15–20%+ is strong; check leverage alongside.