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Personal financial ratios are key metrics that help people make conscious decisions about their financial future. Personal financial ratios give you an edge in your analysis by using simple math.
Financial planners, a family, and individuals are the main users of personal financial ratios. Personal financial ratios are the key elements of financial management. The ratios help in personal financial planning and determine the essential financial metrics used to make ideal financial decisions.
These key financial ratios are simple to calculate, easy to analyze and provides insights into an individuals or a family’s financial condition. The ratios are ideal financial self-assessment tools and aids to judgment. They help pinpoint areas that an individual needs to pay attention to and to help them to make an informed decision.