Financial ratios combine numbers from the financial statements
to measure a specific aspect of the personal financial situation of a client. Financial
ratios are used:
Arch tecture of an Informat on System for Personal F nanc al Plann ng 0
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1. To measure changes in the quality of the financial situation over time
2. To measure the absolute quality of the current financial situation
3. As guidelines for how to improve the financial situation
We will group the ratios into the following eight categories: liquidity, solvency, savings,
asset allocation, inflation protection, tax burden, housing expenses, and insolvency/
credit (DeVaney, Greninger, & Achacoso, 1994; Greninger, Hampton, & Kitt,
1994).
For example, the Solvency Ratio is defined as:
Solvency Ratio = Total Assets / Total Liabilities
and the Savings Rate is defined as:
Savings Rate = Contribution to Savings / Income
Determining a Feasible to-be Concept
The use case scenario is as follows.
Determining a feasible to-be concept includes:
1.. Data.gathering.and.feasibility.check:.The financial planner asks for information
about the client??™s future financial situation.
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