Balance sheet ratio calculator: current ratio, cash ratio and gearing
Calculator
The calculator runs in your browser and sends nothing to us. Take the figures from the balance sheet in the company's latest accounts on Companies House, or look the company up on our free company search, which shows the latest balance sheet figures.
Industry medians
Medians from the latest iXBRL accounts (period ending 2024 or later) of active companies, by industry section. Data as of 1 October 2026.
"Middle half" is the 25th to 75th percentile: half of companies in the industry fall in this range. Many micro-entity balance sheets do not separate cash, so cash ratios rest on fewer companies than current ratios.
What each ratio tells you
The current ratio answers one question: can the company pay what it owes in the next 12 months from assets it can turn into cash within that time. Below 1 means creditors due within a year exceed current assets, shown on the balance sheet as net current liabilities.
- Current ratio = current assets / creditors due within one year. Stock, debtors and cash all count as current assets.
- Cash ratio = cash at bank and in hand / creditors due within one year. The strictest liquidity test: it ignores debtors who may pay late and stock that may not sell.
- Working capital = current assets minus creditors due within one year, the same as the "net current assets (liabilities)" line.
- Long-term debt to equity = creditors due after more than one year / net assets. A rough gearing measure; the full definition also includes short-term borrowings, which small company accounts rarely separate.
How to read the result
One ratio from one year is a snapshot, not a verdict. A low current ratio is normal for businesses paid in cash on the day, such as pubs and shops, and alarming for a contractor that waits 60 days for payment. Compare with the industry median above, then look at the trend over three or more years: see how to compare company accounts over time.
- Ratio below 1 and falling for two or three years: the company may be funding itself with supplier credit or director loans.
- Negative net assets as well: read what negative net assets means before drawing conclusions.
- Very high current ratio in a small company: often a director's loan balance or cash left in the company for tax planning, not trading strength.
Methodology
Benchmarks use each active company's most recent machine-readable accounts with a period ending in 2024 or later, taken from our parse of 37 million iXBRL filings, grouped by the first SIC code on the Companies House register. Ratios are computed only where creditors due within one year are above zero, and capped at 1,000 to stop near-zero denominators distorting the distribution. Full details: methodology.
FAQ
What is a good current ratio for a UK company?
There is no single good number. The median for UK companies filing machine-readable accounts is 1.19, and half of companies fall between 0.47 and 2.99. A ratio below 1 means creditors due within a year exceed current assets, which deserves a closer look at cash and the trend.
Where do I find current assets and creditors in company accounts?
On the balance sheet. Current assets are listed as stock, debtors and cash at bank, with a subtotal. Creditors due within one year appear just below, and the difference is shown as net current assets or liabilities. Micro-entity accounts show the same lines in a shorter form.
Can I calculate ratios from micro-entity accounts?
Yes for the current ratio, because micro-entity balance sheets still show current assets and creditors due within one year. Cash is often not shown separately, so the cash ratio may not be available.
Is a current ratio below 1 a sign of insolvency?
Not on its own. Many healthy businesses that collect cash immediately run with a ratio below 1. It becomes a warning when combined with negative net assets, overdue accounts, rising creditors or a falling trend over several years.
Check any UK company in seconds. Register details and the latest balance sheet figures for 5.6 million companies, free. Full financial history since 2008 as a one-off pack or through the API.
Search companies