Key Takeaways. Personal finance ratios can help you understand where you're at and where you need to improve. Gauge your progress by tracking your emergency fund ratio, basic housing ratio ...

Staff Deputy Personal Finance Editor, Buy Side from WSJ. ... But if your back-end ratio is more than 45%, you’ll need a higher credit score or larger down payment to compensate.

Then they use your financial information to determine if you can afford a new loan or credit line. The formula they use to make their determination is called the debt-to-income (DTI) ratio.

Mortgage-to-income ratio is a metric used by lenders to see how much of your income goes toward debt payments. MTI is a type of debt-to-income ratio, and mortgage lenders generally look for an MTI ...

Liquidity ratios, such as the debt-to-equity (D/E) ratio, which compares total liabilities to total shareholder equity, can evaluate a company's financial health.

Your FI ratio paints a more vivid picture on where you are on the path to financial independence.” Read More: I’m a Self-Made ...

There's no shortage of budgeting and spending rules when it comes to personal finance. One says you shouldn't spend more than 30% of your monthly income on housing. Another says to always save 10% ...

The lower the DTI ratio than 35%, the better your chances of getting a personal loan. If the DTI exceeds 35%, the bank will scrutinise your personal loan application and documents more closely.

Troy Segal is an editor and writer. She has 20+ years of experience covering personal finance, wealth management, and business news. Investopedia / Jiaqi Zhou Capitalization ratios are indicators ...