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Financial Analysis to show your financial position

Financial Analysis to show the investors financial position can be important for individual investors, as it is for companies.

A range of calculated ratios, values, and percentages can be graphed to show the trend over time of how an investor has been managing their finances. The ratios include: savings ratio, debt service ratio, and solvency ratio. Up to 16 different values or percentages can be plotted to see the visual impact of the investor’s financial position.

  • Solvency ratio shows how debt (liabilities) is being used to pay for Assets. A negative (-ve) Solvency Ratio would mean your debt is higher than the Asset value, so you would not be able to repay the Liabilities if you sold the Assets for the current values.
  • Liquidity Ratio shows how easily you could pay off Liabilities which are due to be paid in full in the 6 month period after the date shown.
  • Saving Ratio shows how much of your income you are able to save.
  • Debt Service Ratio shows how much of your Income is used to service your debt (Liability payments). 
  • Debt Payment to available Income Ratio shows the ability the make debt payments after paying all other expenses.