Ratios are the simplest way of determining the health of an entity. Any financial decision in the corporate world is based on the output of specific ratios, be it the Gross Profit Margin or the Return on Equity. We have so many ratios covering different aspects of financial statements, capturing the entire performance of a company for an analysis.
Similarly, personal financial statements are analysed and the results interpreted as per the need requiring information on specific areas, for example; a banker would like to know the safety of the capital based on the merit of a client, while the insurance company would be interested in knowing the insurability of a client. An individual may like to use financial statements to assess potential wealth growth, and to ascertain the progress towards goal attainment.
At the end of the course, you would be able to understand :
- Need of Financial Health Check
- Personal Financial Statements
- Need to use Financial Ratios
- Different Financial Ratios