Enter the figures from a balance sheet and statement of profit and loss. The calculator returns seven Class 12 accounting ratios and shows the working for each one, so you can check your own answer step by step.
Each result shows the formula with your numbers in it. Write the same line in your answer sheet: examiners mark the working as well as the final figure. Then say in your own words why each ratio is high or low, which is how a teach-back learning app checks that the method has stuck.
Class 12 accounting ratios fall into four groups: liquidity, solvency, activity (turnover) and profitability. The table shows what each group tells you and which ratios from it this calculator works out.
| Type | What it shows | Ratios in this calculator |
|---|---|---|
| Liquidity | Whether short-term debts can be paid | Current ratio, quick (liquid) ratio |
| Solvency | Whether long-term debts are safely covered | Debt-equity ratio |
| Activity (turnover) | How fast inventory and receivables turn into sales and cash | Inventory turnover, trade receivables turnover |
| Profitability | How much of revenue is left as profit | Gross profit ratio, net profit ratio |
The formulas follow the chapter “Accounting Ratios” in NCERT Class 12 Accountancy Part II. Amounts are in rupees; averages are (opening + closing) ÷ 2.
| Ratio | Formula | Type |
|---|---|---|
| Current ratio | Current assets ÷ Current liabilities | Liquidity |
| Quick (liquid) ratio | Quick assets ÷ Current liabilities, where quick assets = Current assets − Inventories − Prepaid expenses | Liquidity |
| Debt-equity ratio | Long-term debts ÷ Shareholders’ funds | Solvency |
| Gross profit ratio | Gross profit ÷ Revenue from operations × 100, where gross profit = Revenue from operations − Cost of revenue from operations | Profitability |
| Net profit ratio | Net profit ÷ Revenue from operations × 100, where net profit generally means profit after tax | Profitability |
| Inventory turnover ratio | Cost of revenue from operations ÷ Average inventory | Activity |
| Trade receivables turnover ratio | Credit revenue from operations ÷ Average trade receivables | Activity |
Long-term debts are long-term borrowings plus long-term provisions. Shareholders’ funds are share capital plus reserves and surplus. If a question gives only total revenue, leave credit revenue at 0 and the calculator uses total revenue, which the result says.
An illustrative company has current assets of ₹4,00,000 including inventories of ₹1,00,000 and prepaid expenses of ₹20,000, current liabilities of ₹2,00,000, long-term debts of ₹3,00,000 and shareholders’ funds of ₹6,00,000. Revenue from operations is ₹10,00,000, of which ₹8,00,000 is on credit; cost of revenue from operations is ₹7,00,000 and net profit ₹1,00,000. Average inventory is ₹87,500 and average trade receivables ₹1,00,000.
These are the calculator’s default values, so you can see each step reproduced above the table.
A calculator checks the number; explaining why the ratio moved checks the understanding. In Teach-Back the student works the figures with a visible calculator and then explains the ratio back, while a Socratic assistant asks until the reasoning holds. Read how the teach-back method works for students, or see what a Socratic AI tutor for commerce should and should not do.
Formulas: NCERT Class 12 Accountancy Part II, chapter “Accounting Ratios” (chapter PDF). Illustrative; confirm the formula and presentation your board, university or teacher expects against the official textbook or syllabus.
Current ratio = Current assets ÷ Current liabilities, written as a proportion such as 2 : 1. It is a liquidity ratio in the NCERT chapter on accounting ratios.
Quick ratio = Quick assets ÷ Current liabilities, where quick assets are current assets minus inventories and prepaid expenses. Those two are excluded because they cannot be turned into cash quickly.
Debt-equity ratio = Long-term debts ÷ Shareholders’ funds. Long-term debts are long-term borrowings plus long-term provisions; shareholders’ funds are share capital plus reserves and surplus.
On cost. Inventory turnover = Cost of revenue from operations ÷ Average inventory, with average inventory taken as opening plus closing inventory divided by two.
A current ratio of 2 : 1 and a quick ratio of 1 : 1 are the figures usually quoted as ideal in Class 12. They are rules of thumb, not legal limits: a business with fast-moving stock can run safely on a lower current ratio.
See it on your own data. Teach-Back — Learn it, then teach it back. Book a 30-minute working session with an engineer.
