Financial Statement Ratio Analyzer
Paste your income-statement and balance-sheet figures and get the full ratio battery — liquidity, solvency, profitability, efficiency and market — instantly, each color-coded against a benchmark. Add a prior-year column for year-over-year deltas, and see the DuPont decomposition that builds ROE from margin, turnover and leverage. The exact analytical skill tested in CPA FAR/BEC, CMA Part 1 and CFA FRA.
DuPont decomposition of ROE
ROE = Net margin × Asset turnover × Equity multiplier. The waterfall shows how each driver lifts (or limits) the final return.
| Driver | Formula | Value |
|---|
Ratio battery
| Ratio | Formula | Value | Prior | Δ | Health |
|---|
Common-size statements
Income statement as a % of revenue; balance sheet as a % of total assets — the view that lets you compare firms of any size.
| Line item | Amount | % of base | Prior % |
|---|
How to read the five ratio families
Financial-statement analysis groups ratios into families, each answering a different question about the business. Reading them together — never one in isolation — is what separates a real analyst from a number-cruncher.
- Liquidity — can the firm pay its near-term bills? Current, quick (acid-test) and cash ratios shrink the asset base from "everything current" down to "cash only."
- Solvency / leverage — can it survive its long-term debt? Debt-to-equity, debt-to-assets and interest coverage (EBIT ÷ interest) measure financial risk.
- Profitability — how much of each sales dollar becomes profit? Gross, operating and net margins, plus ROA and ROE.
- Efficiency / activity — how hard do the assets work? Asset, inventory and receivables turnover, and days sales outstanding (DSO).
- Market — what does the market pay for the earnings? EPS, P/E and dividend payout.
The power of DuPont
Two companies can post an identical 22% ROE for completely different reasons. One earns it through fat margins; another through razor-thin margins but blistering asset turnover; a third simply piles on leverage. The three-factor DuPont model — net margin × asset turnover × equity multiplier — exposes which engine is actually driving the return, and how durable it is. A high ROE built almost entirely on the equity multiplier is a leverage story, and leverage cuts both ways.
Analyzer FAQs
It decomposes ROE into net profit margin, asset turnover and the equity multiplier. Multiplying the three reconstructs ROE and reveals whether returns come from profitability, asset efficiency or financial leverage.
Roughly 1.5 to 3.0 is generally healthy. Below 1.0 is a possible liquidity warning; well above 3.0 can mean idle cash or slow inventory. Benchmarks vary by industry, so compare against peers.
The quick (acid-test) ratio removes inventory: (current assets − inventory) ÷ current liabilities. It is stricter because inventory can be slow to turn into cash.
Yes. Every figure is computed in your browser. Nothing is uploaded, stored or sent anywhere.