Calculating financial ratios has traditionally been a painstaking process involving manual data extraction and detailed analysis—often tedious and error-prone. In 2025, artificial intelligence (AI) is reshaping this essential financial practice, making the calculation of financial ratios faster, more accurate, and highly scalable.
Financial ratios such as Quick Ratio, Profit Margin, and Debt Ratio are vital for assessing company performance, profitability, and risk. There are at least 20 financial ratios in common use, which vary in complexity. Manually calculating all these ratios can significantly drain analyst resources.
AI-driven tools simplify this process considerably. Platforms like Financial Statements AI provide seamless integration for calculating essential financial ratios directly from your company's financial documents. Here’s how you can leverage AI technology in three simple steps:
Step 1: Upload Financial Documents
Upload your financial statements (balance sheets and income statements) securely into Financial Statements AI.
Step 2: Confirm Automatic Classification
Financial Statements AI will automatically identify the balance sheet and income statement from the document. Click ‘Confirm’ to validate the classification and extract the data in standardized form.
Step 3: Access Standardized Financial Data
Download your standardized financial data instantly into an Excel template, where financial ratios can be ratios computed directly. Because the data is standardized, it will always be in the same format (i.e. it will have the same number of rows, in the same order) no matter the format in the input documents. Pre-configured Excel formulas can operate on the standardized data without requiring any manual intervention,
Try Financial Statements AI for free by booking a demo or contacting hello@evolution.ai.
AI solutions for financial analysis typically perform two primary tasks:
Data Extraction
AI tools expertly interpret financial documents—such as annual reports, income statements, and balance sheets—using advanced semantic understanding, enabling accurate extraction of key financial figures.
Conversion to Standard Format
Extracted data is downloaded as an Excel file, allowing users to manipulate and analyze data swiftly and accurately. Analysts determine the most relevant ratios based on company-specific and industry-specific contexts, facilitating quick and reliable financial analyses.
Calculating financial ratios can be challenging due to several factors, including varying accounting methods (e.g., LIFO and FIFO) and differing industry requirements. For instance, manufacturing firms focus heavily on inventory turnover, while banks emphasize return on assets. Thus, AI assists rather than completely automates ratio calculation, ensuring accuracy by empowering users with structured and reliable data.
To maximize your financial analysis efficiency, consider the following when choosing an AI financial analysis tool:
If your selected tool meets these criteria, it's likely a strong addition to your financial analysis strategy.
General AI virtual agents like ChatGPT or Gemini are unsuitable for precise financial calculations due to risks of "hallucinations"—generating plausible but incorrect financial data. Accurate financial analysis demands specialized AI that reliably extracts and standardizes financial data.
Optical Character Recognition (OCR) technology can aid financial ratio calculation by converting images into readable text. However, OCR cannot ‘understand’ the data and convert it to a standardized form. OCR is only able to provide verbatim text from the page. The user will have to perform substantial manual work to standardize the data.
The rapid growth of AI in fintech suggests exciting advancements:
Configurable Schemas
Upcoming AI solutions will offer customizable data schemas, allowing analysts to tailor financial data outputs specifically to their analytical needs. This adaptability will enhance efficiency and accuracy, particularly for specialized sector-specific metrics.
"Configurable schemas significantly streamline workflows, especially with industry-specific metrics or custom financial formulas." — Irina Staneva, formerly of PWC and BNP Paribas, now Head of Financial Data at Evolution AI.
Automated Translation
AI platforms will soon incorporate seamless multilingual support, automatically translating financial data into the user's preferred language, significantly easing cross-border financial analysis.
Financial Statements AI stands out by offering:
Enhance your financial analysis now with a demo of Financial Statements AI. Contact us at hello@evolution.ai to get started.
Martin Goodson is the CEO & Chief Scientist of the multiple award-winning AI data extraction firm Evolution AI. He organises the London Machine Learning Meetup: the largest community of AI & machine learning experts in Europe. In 2019, he was elected Chair of the Data Science and AI Section of the Royal Statistical Society, the membership group representing professional data scientists and AI practitioners in the UK.
