Rekenbox · 2026
Current ratio calculator
Calculate your current ratio from current assets and current liabilities. Or analyse every ratio.Your figures explained
Understand the number.
Current assets / current liabilities
How often current assets cover current liabilities. Stock and slow receivables are not immediately cash.
Bar length shows absolute magnitude; negative values are red and retain their minus sign. A dash means unavailable.
KVK gives 1.2–1.5 as orientation. Below 1.2 merits attention; ≥1.5 does not guarantee sufficient cash. KVK ↗
Three practical next steps
- Invoice promptly and follow up overdue balances.
- Schedule taxes and supplier payments weekly.
- Fund fixed assets with sufficiently long-term finance.
All ratios at a glance
No credit assessment or industry benchmark. Comparable years and reliable classification are needed for useful conclusions.
- Total assets
- €110,000.00
- Equity
- €50,000.00
- Current liabilities
- €30,000.00
- Non-current liabilities and provisions
- €30,000.00
- Balance difference
- €0.00
- Net profit
- €26,000.00
- Operating working capital excluding cash
- €10,000.00
Findings and points to check
- Add the previous financial year for indirect operating and free cash flow. Other ratios use closing balances without a trend.
- A dash means unavailable: a missing comparison year or a denominator of zero or less. It is not a zero result.
All financial ratios and formulas
| Ratio | 2026 | Formula |
|---|---|---|
| Solvency: equity/assets | 45.45% | Equity / total assets × 100% |
| Equity-to-debt ratio | 83.33% | Equity / total liabilities × 100% |
| Debt ratio: liabilities/assets | 54.55% | Total liabilities / total assets × 100% |
| Current ratio | 1.67× | Current assets / current liabilities |
| Quick ratio | 1× | (Current assets − inventory) / current liabilities |
| Net working capital | €20,000.00 | Current assets − current liabilities |
| EBIT | €35,000.00 | Revenue − cost of sales − staff − other operating expenses − depreciation |
| EBITDA | €45,000.00 | EBIT + depreciation and amortisation |
| EBITDA margin | 18.75% | EBITDA / revenue × 100% |
| Gross profit margin | 58.33% | (Revenue − cost of sales) / revenue × 100% |
| Net profit margin | 10.83% | Net profit / revenue × 100% |
| Return on equity (ROE) | 52% | Net profit / average equity × 100% |
| Return on assets (ROA) | 31.82% | EBIT / average total assets × 100% |
| Interest coverage | 11.67× | EBIT / interest expense |
| Days sales outstanding (DSO) | 22.81 days | Average trade receivables / revenue × 365 |
| Days payable outstanding (DPO) | 54.75 days | Average trade payables / cost of sales × 365 |
| Days inventory outstanding (DIO) | 73 days | Average inventory / cost of sales × 365 |
| Total asset turnover | 2.18× | Revenue / average total assets |
| Cash conversion cycle | 41.06 days | DSO + DIO − DPO |
| Operating cash flow (indirect) | — | Net profit + depreciation − change in operating working capital |
| Free cash flow | — | Operating cash flow − net capital expenditure paid |
Entered balance sheet and profit and loss
| Item | 2026 |
|---|---|
| Non-current assets | €60,000.00 |
| Inventory | €20,000.00 |
| Trade receivables | €15,000.00 |
| Cash and cash equivalents | €10,000.00 |
| Other current assets | €5,000.00 |
| Equity (including profit) | €50,000.00 |
| Non-current liabilities and provisions | €30,000.00 |
| Trade payables | €15,000.00 |
| Current taxes and social contributions | €5,000.00 |
| Other current liabilities | €10,000.00 |
| Revenue excluding VAT | €240,000.00 |
| Cost of goods sold | €100,000.00 |
| Staff costs | €65,000.00 |
| Depreciation and amortisation | €10,000.00 |
| Other operating expenses (net) | €30,000.00 |
| Interest expense | €3,000.00 |
| Tax on profit | €6,000.00 |
| Capital expenditure paid less disposal proceeds | €15,000.00 |
| Borrowings included in other current liabilities | €0.00 |
| Non-operating part of other current assets | €0.00 |
Assumptions, sources and version
2026 · financial-ratios-1.0 · v2026.1
- Indicative ratios based on your own book values. No industry benchmark, credit assessment or accountant’s assurance. KVK ranges are general guidance; lender agreements and industry conventions can differ.
- A year uses 365 days. DSO, DPO and DIO use average balances for two years, otherwise closing balances. Revenue and cost of sales approximate credit sales and purchases; VAT, seasonality and cash transactions can distort collection periods.
- ROA = EBIT / average assets; ROE = net profit / average equity. A zero or negative denominator does not produce a meaningful ratio. Simplified indirect cash flow = profit + depreciation − change in operating working capital, excluding cash and specified borrowings/non-operating assets. Other non-cash items and business acquisitions/disposals are not included.
- Enter comparable full years with the same accounting policies. Negative equity and unbalanced accounts remain visible. Imported proposals are applied only after your classification review; unknown accounts are never silently omitted.
- KVK — levensvatbaarheid, liquiditeit en solvabiliteit (2026-09-06)
- KVK — werkkapitaal (2026-09-06)
- Referentie GrootboekSchema — definitieve versie RGS 3.7 (2026-09-06)
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Understand your result
How this tool works
The current ratio compares current assets with current liabilities. Current assets in this calculator include inventory, trade receivables, cash and other short-term assets. Current liabilities consist of trade payables, taxes and social contributions, and other short-term obligations. Divide the first group by the second. A ratio of 1.5 means the balance sheet contains one and a half euros of current assets for each euro of current liabilities.
That coverage differs from a check of today's bank balance. Inventory may need to be sold, a customer may pay late, and a prepaid expense does not automatically turn back into cash. Review the quick ratio and a cash forecast alongside the current ratio. The quick ratio excludes inventory from the numerator. The gap between them shows how much balance-sheet coverage depends on stock. Growing inventory can improve the current ratio without improving the ability to pay bills soon.
KVK gives approximately 1.2 to 1.5 as general orientation. A lower figure deserves investigation, but a higher one does not guarantee that every payment will be made on time. Industry and business model matter. Prepaid subscriptions, short selling cycles or favourable supplier agreements may lead to different typical ratios. This calculator has no industry benchmark dataset and does not assess creditworthiness. The reference range helps identify useful follow-up questions.
Use figures from the same balance-sheet date and exclude non-current liabilities from the denominator. Amounts repayable within one year should be included in current obligations where that is how your accounts present them. Add a previous year for comparison and investigate large changes in individual items. If current liabilities are zero, the calculator displays a dash rather than infinity. The free PDF and CSV preserve the calculation and visible assumptions, making later changes easier to explain. Keep evidence of account classifications and look beyond a single year-end snapshot when seasonality or unusually timed payments materially affect your business.
Current ratio formula and reference range
Current ratio = current assets / current liabilities
Read the result alongside the composition of your balance sheet and payment agreements. The visual comparison shows current and previous values; the selected ratio’s formula remains visible.
Common questions
How do you calculate the current ratio?
Add inventory, receivables, cash and other current assets. Divide that total by trade payables, current tax liabilities and other short-term obligations.
What is a healthy current ratio?
KVK gives around 1.2–1.5 as general orientation. This does not replace industry analysis or cash planning. Even with a high ratio, receivables may be doubtful or stock obsolete.
What if current liabilities are zero?
There is no positive denominator for division, so we display a dash. Having no current liabilities does not by itself describe future spending needs.
Is inventory always included?
The current ratio includes inventory at the entered book value. The quick ratio excludes it. Review any impairment and whether stock is actually saleable.
Which details do you need?
- Company name (optional)
- Financial year
- Compare previous year
- Net profit
- Non-current assets
- Inventory
- Trade receivables
- Cash and cash equivalents
- Other current assets
- Equity (including profit)
- Non-current liabilities and provisions
- Trade payables
- Current taxes and social contributions
- Other current liabilities
- Revenue excluding VAT
- Cost of goods sold
- Staff costs
- Depreciation and amortisation
- Other operating expenses (net)
- Interest expense
- Tax on profit
- Net profit from the accounts
- Capital expenditure paid less disposal proceeds
- Borrowings included in other current liabilities
- Non-operating part of other current assets
- Previous year: non-current assets
- Previous year: inventory
- Previous year: trade receivables
- Previous year: cash and cash equivalents
- Previous year: other current assets
- Previous year: equity (including profit)
- Previous year: non-current liabilities and provisions
- Previous year: trade payables
- Previous year: current taxes and social contributions
- Previous year: other current liabilities
- Previous year: revenue excluding vat
- Previous year: cost of goods sold
- Previous year: staff costs
- Previous year: depreciation and amortisation
- Previous year: other operating expenses (net)
- Previous year: interest expense
- Previous year: tax on profit
- Previous year: net profit from the accounts
- Previous year: capital expenditure paid less disposal proceeds
- Previous year: borrowings included in other current liabilities
- Previous year: non-operating part of other current assets
Limits of this tool
- Indicative ratios based on your own book values. No industry benchmark, credit assessment or accountant’s assurance. KVK ranges are general guidance; lender agreements and industry conventions can differ.
- A year uses 365 days. DSO, DPO and DIO use average balances for two years, otherwise closing balances. Revenue and cost of sales approximate credit sales and purchases; VAT, seasonality and cash transactions can distort collection periods.
- ROA = EBIT / average assets; ROE = net profit / average equity. A zero or negative denominator does not produce a meaningful ratio. Simplified indirect cash flow = profit + depreciation − change in operating working capital, excluding cash and specified borrowings/non-operating assets. Other non-cash items and business acquisitions/disposals are not included.
- Enter comparable full years with the same accounting policies. Negative equity and unbalanced accounts remain visible. Imported proposals are applied only after your classification review; unknown accounts are never silently omitted.
Year: 2026 · Version 2026.1
Sources for this tool
- KVK — levensvatbaarheid, liquiditeit en solvabiliteit · calculation source checked 2026-09-06
- KVK — werkkapitaal · calculation source checked 2026-09-06
- Referentie GrootboekSchema — definitieve versie RGS 3.7 · calculation source checked 2026-09-06
Prepared by the Rekenbox product team at Winstwaker. The listed source references and calculation version make the method traceable. Report a content error Last updated: 2026-09-06. Rekenbox is a product by Winstwaker. The tool applies a calculation model to your inputs; a result or paid report is not a personal assessment by an adviser.