Financial ratios

Sources and assumptions

Calculation assumptions

• This calculator freezes no legal value: a ratio is a quotient between two figures from your accounts, not a rate schedule. Everything it displays comes from the nine amounts you enter. Hence the absence of any tax year on this page.
• The benchmarks that trigger a warning — financial autonomy below 20 %, debt-to-equity above 100 %, repayment beyond 4 years, current ratio below 1 — are analysts' rules of thumb, not rules of law. No statute sets them and no official page puts a figure on them: they position, they do not judge. The only legal threshold touching these figures is equity falling below half the share capital, which is not computed here since the share capital is not entered.
• Two ratios carry a simplified version of the official definition here, and are named accordingly. Insee defines economic profitability as gross operating surplus over economic assets: with no operating surplus among the inputs, the line shown is return on assets, net income over total assets. Insee defines net financial profitability as net cash flow over equity: the line shown keeps net income as the numerator, that is, the usual ROE.
• Both liquidity ratios are expressed as percentages rather than as plain numbers: 150 % reads as « 1.5 times », so the usual alert level of 1 corresponds to 100 %. The quick ratio removes inventory from current assets; if you enter no inventory, it equals the current ratio.
• Amounts are taken exactly as you read them on the balance sheet and income statement, with no restatement: no capitalised leases, no reclassified shareholder current accounts, no discounted bills not yet due. The split between financial debt and short-term liabilities is the one you choose, and it drives the debt and liquidity ratios directly.
• Not computed here: working capital, working capital requirement and net cash position, the break-even point, inventory, customer and supplier turnover ratios, consolidated accounts, and any comparison with sector averages. A ratio on its own says nothing: it is read over time and against comparable companies.