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    Almaz Pasha HS - Wealth Managemnt

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    Almaz Pasha
    1. The document analyzes various financial ratios for a businessman named Mr. X, including liquidity, savings, debt, debt servicing, solvency, and life insurance coverage ratios. 2. Most of Mr. X's ratios are within recommended ranges, indicating good financial planning, except for a slightly high debt ratio. 3. Suggestions are provided to increase savings for retirement, invest in interest-earning assets, reduce debt levels slightly, and maintain adequate life insurance coverage.

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    Almaz Pasha HS - Wealth Managemnt

    Uploaded by

    Almaz Pasha
    25 views3 pages
    1. The document analyzes various financial ratios for a businessman named Mr. X, including liquidity, savings, debt, debt servicing, solvency, and life insurance coverage ratios. 2. Most of Mr. X's ratios are within recommended ranges, indicating good financial planning, except for a slightly high debt ratio. 3. Suggestions are provided to increase savings for retirement, invest in interest-earning assets, reduce debt levels slightly, and maintain adequate life insurance coverage.

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    ALMAZ PASHA HS -WEALTH MANAGEMNT

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    1. The document analyzes various financial ratios for a businessman named Mr. X, including liquidity, savings, debt, debt servicing, solvency, and life insurance coverage ratios. 2. Most of Mr. X's ratios are within recommended ranges, indicating good financial planning, except for a slightly high debt ratio. 3. Suggestions are provided to increase savings for retirement, invest in interest-earning assets, reduce debt levels slightly, and maintain adequate life insurance coverage.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    25 views3 pages

    Almaz Pasha HS - Wealth Managemnt

    Uploaded by

    Almaz Pasha
    1. The document analyzes various financial ratios for a businessman named Mr. X, including liquidity, savings, debt, debt servicing, solvency, and life insurance coverage ratios. 2. Most of Mr. X's ratios are within recommended ranges, indicating good financial planning, except for a slightly high debt ratio. 3. Suggestions are provided to increase savings for retirement, invest in interest-earning assets, reduce debt levels slightly, and maintain adequate life insurance coverage.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    WEALTH MANAGEMENT

    ASSIGNMENT: 01

    NAME ALMAZ PASHA HS

    REG NO 19MBAR0255

    SECTION CF-1

    __________________________________________________________________________

    SCORE

    FACULTY SIGNATURE
    Mr X (56 years) is a businessman owning a business in Construction materials and
    transportation, I have analysed his person’s personal financial planning ratios and have interpreted
    and would have given some suggestions on the basic of the ratios calculated

    S.N RATIO CALCULATION INTERPRETATIO SUGGESTION


    O N S
    1 Liquidit = cash / Monthly expenses Anything around 4 to I would like to
    y ratio Cash in hand-3,50,000 5 months can be suggest Mr X in
    Monthly expenses- 80,000 considered to be having his
    =3,50,000/80,000 good and in case of money invested
    =4.375 Mr X he has a in mutual funds
    liquidity ratio of 4.37 and fix a deposit
    which is actually a and better
    good liquidity ratio financial
    and he could survive instruments
    with this liquidity for which provide
    months him Extra
    money for the
    future
    2 Savings =Savings/Gross income The ideal ratio is 3-5 As Mr X Is
    ratio Savings-38,00,000 And the ratio around his 50s
    Gross income-12,00,000 depends upon the my suggestion to
    =38,00,000/12,00,000 persons age his him is that he
    =3.16 income and financial should start
    goals in the case of saving for his
    Mr X has some old ages and he
    savings ratio is 3.16 should start
    that is approximately investing on
    a good savings ratio some
    for a man of his age instruments
    which give him
    profit or interest
    3 Debt =Total liabilities/Total assets Here Mr X has a I would suggest
    Asset Total liabilities-1500000 little over borrowed ( Mr X to have a
    ratio Total assets-1,95,00,000 liabilities ) compare little less
    =5,00,000/1,95,00,000 to his value of the liability
    =12.82% assets ,the person although
    won’t face any although he has
    solvency issues but repaying
    looking at his age it capacity with his
    would be Little risker assets
    4 Debt =Short term liabilities/Total income Mr X has a debt I would like to
    Servicin Short term liabilities-1,50,000 servicing ratio of suggest Mr X to
    g ratio Total income-7,00,000 21.42% which is less make validated
    =1,50,000/7,00,000 than 40% which has purchases using
    =21.42% not cross the total his credit card as
    death obligation he has and good
    mark So Mr X has repaying
    clear control over his capacity
    short-term debts
    5 Solvenc =Net worth/Total assets His overall Solvency As the solvency
    y ratio Net worth-1,70,00,000 ratio is greater than ratio is above 15
    Total assets-1,95,00,000 50% as The assets he on the other
    =1,70,00,000/1,95,00,000 owns are adequate hand it’s higher
    =87.17% enough to manage so there’s no
    the debts even in the further
    future if he has any suggestions to
    debts he could easily be given
    clear them by using
    his asset and also
    solve if there is any
    kind of emergency
    6 Life =(Net worth+ existing life Here the ratio I would suggest
    insuranc cover)/post tax salary indicates that the a person to have
    e Net worth-1,70,00,000 person has provided one or more
    coverage life cover-25,00,000 and life insurance for good life
    ratio post tax salary-12,00,000 himself and his insurance as it’s
    =(1,70,00,000+25,00,000)/12,00,00 family almost for 20 an Additional
    0) years’ worth of Investment on
    =16.25 expenses in His own life and
    Adequate And far his families
    more higher than the
    ideal value

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