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Personal Financial Planning
7. CHAPTER 4: PERSONAL FINANCIAL STATEMENTS (PREPARATION AND ANALYSIS)/Types of Ratio Analysis
7. CHAPTER 4: PERSONAL FINANCIAL STATEMENTS (PREPARATION AND ANALYSIS) Illustration
Syllabus Slides

Types of Ratio Analysis

01.Core Concepts

• Debt analysis • Consumer debt ratio—nonhousing monthly debt service to monthly gross income • Monthly housing costs to monthly gross income • Monthly housing costs and other debt repayments to monthly gross income • Performance ratios—savings • Savings ratio • Net cash flow plus savings to annual gross income • Performance ratios—income • Rate of return on investments (ROI) • Income on investments • Investment assets to annual gross income