Financial Ratios

The numbers a banker or investor checks first

Inputs (₹)
Liquidity
Current ratio · ≥1.5 healthy2.10
Quick ratio · ≥1 healthy1.52
Leverage
Debt / equity · ≤1 conservative0.46
Interest coverage · ≥3x safe4.7x
Efficiency & returns
Asset turnover · higher is better1.21x
Net margin · ≥10% strong10.0%
Return on equity · ≥15% strong19.6%
Return on assets · ≥8% strong12.1%

What each group tells you

Liquidity · Leverage · Returns

Liquidity shows whether you can pay short-term bills. Leverage shows how much debt risk you carry and whether profits cover the interest. Returns show how efficiently you turn assets and equity into profit.

A lender looks at interest coverage and debt/equity first; an investor looks at ROE and margins. This page shows both in one glance.

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