Financial Ratios Calculator
Enter your income statement and balance sheet figures to instantly calculate the ratios lenders use to evaluate your business — including DSCR, the most critical lending metric.
Income Statement
After all expenses and taxes
Before interest & taxes — used for DSCR
Balance Sheet
Subset of current assets — used for quick ratio
Debt Service
Total principal + interest on all existing loans
Liquidity
Measures ability to cover short-term obligations with short-term assets.
≥ 2.0 strong · 1.0–2.0 adequate · < 1.0 concern
Like the current ratio but excludes inventory, which may be hard to liquidate quickly.
≥ 1.0 strong · 0.5–1.0 adequate · < 0.5 concern
Leverage
Shows how much of the business is financed by debt vs. owner equity.
≤ 1.5 strong · 1.5–3.0 moderate · > 3.0 high leverage
Compares total debt load to revenue. Common in MCA and revenue-based lending underwriting.
≤ 1.0 strong · 1.0–2.0 moderate · > 2.0 high
Profitability
Percentage of revenue that becomes profit after all expenses.
≥ 10% strong · 5–10% moderate · < 5% thin
How efficiently the business generates profit from its total asset base.
≥ 5% strong · 2–5% moderate · < 2% low
Return generated for every dollar of owner equity invested.
≥ 15% strong · 8–15% moderate · < 8% low
Lending / DSCR
The single most important ratio lenders use. Shows how much income covers debt obligations.
≥ 1.25 lender minimum · 1.0–1.25 borderline · < 1.0 decline
What Lenders Actually Look At
DSCR First
Most SBA and conventional lenders won't move forward below 1.25x DSCR. It's the single most gating number in credit underwriting.
Liquidity as a Cushion
Current and quick ratios tell the lender whether a business can survive a bad month. A ratio below 1.0 signals that short-term debt exceeds short-term assets.
Profitability Trends
Lenders look at 2-3 years of tax returns. A single strong year matters less than consistent or improving margins over time.
Leverage Limits
High debt-to-equity doesn't automatically disqualify a business, but it raises the question of capacity to take on more debt. Asset-backed collateral can offset this.
Frequently Asked Questions
Need help improving your ratios?
Whether your numbers are strong or need work, a Pezzula advisor can help you find the right financing structure — and identify what lenders will see before you apply.
Related Resources
Financial Health Checklist
Score your business on 24 lender-readiness factors across cash flow, credit, and operations.
Working Capital Tool
Compute current ratio, quick ratio, and identify gaps in your liquidity position.
Profitability Ratio Dashboard
Track gross, operating, and net margin across reporting periods.
Break-Even Calculator
Calculate contribution margin and see how a loan changes your break-even.