keisoku

Financial Safety Ratio Calculator

Enter the current assets, quick assets, current liabilities, fixed assets, equity and total assets from a balance sheet (B/S) and instantly calculate key safety ratios: current ratio, quick ratio, equity ratio, fixed-assets-to-equity ratio and debt-to-equity ratio, each with its benchmark.

Input

Enter each line item from the balance sheet (B/S). Any unit is fine, but use the same unit for every field (for example, thousands of dollars).

k

Cash, accounts receivable, inventory and other assets convertible to cash within a year

k

Current assets excluding inventory, such as cash, deposits and receivables

k

Accounts payable, short-term loans and other debts due within a year

k

Long-held assets such as land, buildings and equipment

k

Capital, retained earnings and other funds that need not be repaid

k

Current assets + fixed assets (equal to liabilities + equity)

Result

Equity ratio

50%

Share of total assets funded by equity that never has to be repaid

Current ratio

200%

Quick ratio

133.3%

Fixed assets to equity

120%

Debt-to-equity ratio

100%

Safety ratios at a glance

RatioValueFormulaBenchmark
Current ratio200%Current assets ÷ Current liabilities × 100200% or higher is ideal; safe at 200%+
Quick ratio133.3%Quick assets ÷ Current liabilities × 100100% or higher is a common target
Equity ratio50%Equity ÷ Total assets × 10040%+ is stable; higher is better
Fixed assets to equity120%Fixed assets ÷ Equity × 100100% or lower is ideal; lower is better
Debt-to-equity ratio100%Total liabilities ÷ Equity × 100100% or lower is a target; lower is better

Total liabilities (current + long-term) are treated as total assets − equity = 1,500.

How it works

  • Current ratio (%) = Current assets ÷ Current liabilities × 100. It shows how well assets convertible to cash within a year cover short-term debt; 200% or higher is generally considered ideal.
  • Quick ratio (%) = Quick assets ÷ Current liabilities × 100. Using only the most liquid assets (excluding inventory) to cover short-term debt, 100% or higher is a common benchmark.
  • Equity ratio (%) = Equity ÷ Total assets × 100. This is the share of total assets funded by equity that never has to be repaid; the higher it is the more stable the finances, with 40% or more often seen as a sign of stability.
  • Fixed-assets-to-equity ratio (%) = Fixed assets ÷ Equity × 100, and Debt-to-equity ratio (%) = Total liabilities ÷ Equity × 100. Lower values are safer, and a fixed-assets-to-equity ratio of 100% or less is ideal. Total liabilities are computed as Total assets − Equity.
  • Enter every item in the same unit (for example, thousands). A ratio whose denominator is zero cannot be calculated and is shown as "—". Percentages are shown rounded to one decimal place.
  • Results are estimates based on standard formulas and benchmarks. Optimal levels and interpretation vary by industry, company size, accounting standard and fiscal year. Base any final management, credit or investment decision on official financial statements and advice from a professional.