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).
Cash, accounts receivable, inventory and other assets convertible to cash within a year
Current assets excluding inventory, such as cash, deposits and receivables
Accounts payable, short-term loans and other debts due within a year
Long-held assets such as land, buildings and equipment
Capital, retained earnings and other funds that need not be repaid
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
| Ratio | Value | Formula | Benchmark |
|---|---|---|---|
| Current ratio | 200% | Current assets ÷ Current liabilities × 100 | 200% or higher is ideal; safe at 200%+ |
| Quick ratio | 133.3% | Quick assets ÷ Current liabilities × 100 | 100% or higher is a common target |
| Equity ratio | 50% | Equity ÷ Total assets × 100 | 40%+ is stable; higher is better |
| Fixed assets to equity | 120% | Fixed assets ÷ Equity × 100 | 100% or lower is ideal; lower is better |
| Debt-to-equity ratio | 100% | Total liabilities ÷ Equity × 100 | 100% 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.
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Financial Safety Ratio Calculator