Financial Ratio Trend Analysis: Diagnose Corporate Health with 3-Year Data

What Is Financial Ratio Analysis?

Financial ratio analysis expresses relationships between financial statement items as numbers, enabling assessment of a company’s profitability, safety, and efficiency. 3+ year trend analysis is far more meaningful than a single-year snapshot.

The 8 Key Financial Ratios

Safety Ratios

Current Ratio

Current Assets / Current Liabilities × 100

Meaning: Short-term debt repayment capacity
Benchmark: 200%+ (healthy)
Low: Short-term liquidity risk

Debt-to-Equity Ratio

Total Liabilities / Equity × 100

Meaning: Degree of debt reliance
Benchmark: 100% or below
High: Financial leverage risk

Equity Ratio

Equity / Total Assets × 100

Meaning: Proportion of assets financed by equity
Benchmark: 50%+

Profitability Ratios

ROA (Return on Assets)

Net Income / Total Assets × 100

Meaning: How efficiently assets generate profits
Benchmark: 5%+

ROE (Return on Equity)

Net Income / Equity × 100

Meaning: Return on shareholders’ capital
Benchmark: 10%+
Warren Buffett’s key metric

Operating Margin

Operating Income / Revenue × 100

Meaning: Profitability from core operations
Benchmark: 10%+

Net Profit Margin

Net Income / Revenue × 100

Meaning: Overall profitability
Benchmark: 5%+

Efficiency Ratio

Asset Turnover

Revenue / Total Assets

Meaning: How efficiently assets generate revenue
Benchmark: 1.0x+

DuPont Analysis: ROE = Net Margin × Asset Turnover × Financial Leverage Even a high ROE needs scrutiny — is it from operational excellence or excessive debt?

3-Year Financial Ratio Trend Analyzer

Enter real company data or modify the default examples to explore trends.

재무비율 추세 분석기

3개년 재무 데이터를 입력하면 8대 재무비율의 추세와 벤치마크 비교를 자동으로 표시합니다.

지표202220232024

유동비율▲벤치마크: 200%

166.7%

196.4%

238.5%

부채비율▲벤치마크: 100%

100.0%

80.6%

61.1%

자기자본비율▲벤치마크: 50%

50.0%

55.4%

62.1%

총자산이익률(ROA)▲벤치마크: 5%

5.0%

5.8%

6.6%

자기자본이익률(ROE)▲벤치마크: 10%

10.0%

10.4%

10.6%

영업이익률▲벤치마크: 10%

10.0%

10.5%

11.8%

순이익률▲벤치마크: 5%

7.5%

7.9%

8.6%

총자산회전율▲벤치마크: 1회

0.7회

0.8회

양호 (벤치마크 이상)

보통 (±20%)

주의 (벤치마크 이하)

Key Caveats in Trend Analysis

1. Industry-Specific Benchmarks Asset turnover in manufacturing vs. IT services, and operating margins in retail vs. pharmaceuticals differ structurally. Always compare within the same industry first.

2. One-Time Items Years with large asset disposals, M&A activity, or extraordinary gains/losses will show anomalous ratios.

3. Denominator Effects A sudden jump in ROE may reflect declining equity (share buybacks) rather than genuine profit growth.