Financial Ratio Analyzer
Calculate and interpret profitability, liquidity, efficiency, and leverage ratios with commentary.
This is an AI tool. The text you enter is sent to our AI service to generate your result. Our own server doesn't store it or use it for training; if it's down, a backup AI provider may handle it. How we handle your input
How to Use Financial Ratio Analyzer
- 1Paste the financial data — the balance sheet and P&L figures the ratios are built from.
- 2Add the company name and the industry: 'SaaS', 'Retail', 'Manufacturing'. Sector context changes which ratios matter and what counts as healthy.
- 3Click 'Analyse Financial Ratios'.
- 4You get profitability, liquidity, efficiency and leverage ratios, an overall health summary, and strengths, concerns and recommended actions.
- 5Recalculate every ratio yourself before relying on any of them.
Frequently Asked Questions
Are the calculated ratios accurate?
Verify each one. Language models are unreliable at arithmetic and can produce a ratio that looks right and is not. Use the output for the structure, the interpretation and the questions it raises, and compute the actual numbers in a spreadsheet.
Why does industry matter?
Because the same current ratio is comfortable in software and alarming in manufacturing, and gearing that is normal for a utility would be severe for an agency. Naming the sector makes the interpretation section meaningful rather than generic.
Does it compare against industry benchmarks?
It will reference typical ranges for the sector you name, and these are general impressions rather than sourced benchmark data. For anything that matters, use real benchmark data from your own sources.
Can I use this for a lending or investment decision?
Only as one input among several, after verifying the arithmetic. Ratios computed by a tool that cannot compute, interpreted without sight of the accounting policies behind the figures, are not a basis for a credit decision on their own.
What is the most useful part of the output?
The areas of concern and recommended actions. Ratio calculation is something a spreadsheet does better; noticing that deteriorating debtor days and a falling current ratio together point at a collections problem is the part worth reading.
About Financial Ratio Analyzer
The Financial Ratio Analyzer takes a set of financial data and produces profitability, liquidity, efficiency and leverage ratios with interpretation, a health summary, and strengths, concerns and recommended actions.
Be clear about the division of labour. Computing ratios is arithmetic, and a language model is the wrong tool for arithmetic — check every number it produces against your own calculation. What it is genuinely useful for is the layer above: connecting several ratios into an observation, and framing what to do about it.
Naming the industry is what makes the interpretation worth reading. A current ratio of 0.9 is routine for a software business with deferred revenue and a warning sign for a manufacturer with inventory. Without sector context the commentary defaults to textbook thresholds that mislead as often as they help.
Benchmark references are general impressions rather than sourced data, so use real benchmarks where a decision depends on them, and never treat generated ratios as a basis for a credit or investment decision without verifying the arithmetic. Keep client identities out of the input. Your data goes to our own AI server over HTTPS, is used once, and is never stored or used for training. If our server is down, a backup AI provider may handle the request under its own data policy.