A Financial Ratios Analysis Report can help in the process of decision-making for many financial situations / scenarios.
Whether it is for purchasing a new property, buying a new car, planning for wedding, investing into stocks or mutual funds, or simply planning for a holiday, knowing your personal financial numbers is extremely important.
A comprehensive Financial Ratio Analysis will be able to reflect the actual affordability of another investment property, as well as highlighting whether loan eligibility truly equals affordability. More important, financial ratios will be able to reflect whether the purchase will have any impact on cash flow and other financial objectives/goals.
Each Financial Ratio, while indicating a different aspect in the financial status, is inter-linked to another and needs to be read as an overview. It is, in a way, similar to a medical report where you get various readings such as heart rate, blood pressure, cholesterol readings etc. These readings all indicate different areas of your health situation but needs to be understood as a overall picture.