For financial liquidity analysis, users rely on custom spreadsheets built in Excel or Google Sheets alongside dedicated platforms like Portfolio Visualizer, Morningstar X-Ray, Stock Analysis, and Finviz. Spreadsheets provide the foundation for tracking, while the dedicated tools handle specialized tasks like backtesting, screening, and sector breakdowns.
Building your own spreadsheet gives complete control over data and calculations, allowing for personalized financial models. Reading SEC filings through EDGAR, including 10-Q and 10-K reports, is also recommended for deeper fundamental analysis.
For liquidity ratios, the current ratio measures whether a company can cover short-term liabilities with current assets, and the quick ratio, or acid-test ratio, measures the same using only the most liquid assets. Portfolio Visualizer is particularly useful for backtesting and correlation analysis, though it does not automatically flag overlap and concentration risk.
Recommended tools
Spreadsheets (Excel or Google Sheets)Custom portfolio tracking with full control over calculations
Portfolio VisualizerBacktesting, factor exposure, and correlation analysis
Morningstar X-RaySector and geographical breakdowns of holdings
Stock AnalysisStock screening and quick valuation overview
FinvizScreening and fundamental analysis at a glance
Spreadsheet-Based Analysis
Customizable Tracking: Many Users prefer building their own spreadsheets in Excel or Google Sheets for comprehensive portfolio tracking and analysis. "Personally I use a spreadsheet as the base layer."
Detailed Control: Spreadsheets offer complete control over the data and calculations, allowing for personalized financial models. "I also think it's extremely valuable to familiarize oneself with EDGAR and learn how to read 10-Q/10-K filings (and etc)."
Dedicated Portfolio Analysis Tools
Portfolio Visualizer: This tool is frequently recommended for backtesting, factor exposure, and correlation analysis. "Portfolio Visualizer is good for backtesting but I wanted something that flags overlap and concentration risk automatically."
Morningstar X-Ray: Users use Morningstar X-Ray for detailed sector and geographical breakdowns, especially if their broker supports it. "Morningstar X-Ray (good for sector/geography breakdown if your broker supports it)"
Stock Analysis & Finviz: These platforms are noted for screening and valuation purposes, providing a quick overview of fundamentals. "Stock analysis and Finviz are my go to for screening and looking at valuations."
Understanding Liquidity Ratios
Current Ratio: This ratio helps assess a company's ability to cover its short-term liabilities with its current assets. "i. Profitability Ratios * Gross Margin = Gross Profit ÷ Revenue *"
Quick Ratio: Also known as the acid-test ratio, it measures a company's capacity to meet short-term obligations using its most liquid assets. "i. Profitability Ratios * Gross Margin = Gross Profit ÷ Revenue *"
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Bottom line
For financial liquidity analysis, Users commonly use spreadsheets and dedicated portfolio analysis tools to assess their holdings.
FAQ
What is Portfolio Visualizer good for?
Portfolio Visualizer is used for backtesting, factor exposure analysis, and correlation analysis. It does not automatically flag portfolio overlap or concentration risk.
How does Morningstar X-Ray help with portfolio analysis?
Morningstar X-Ray provides detailed sector and geographical breakdowns of your portfolio. It works best if your broker supports it directly.
What are the best tools for stock screening and valuation?
Stock Analysis and Finviz are commonly used for screening stocks and reviewing valuations. They give a quick overview of company fundamentals.
Should I use a spreadsheet or dedicated tool for liquidity analysis?
Many users use spreadsheets as their base layer because they offer complete control over data and calculations. Dedicated tools complement spreadsheets for specialized tasks like backtesting and sector breakdowns.
What is the difference between current ratio and quick ratio?
The current ratio measures a company's ability to cover short-term liabilities using all current assets. The quick ratio, also called the acid-test ratio, uses only the most liquid assets.
What financial filings should I read for analysis?
Users recommend learning to read 10-Q and 10-K filings available through EDGAR for deeper fundamental analysis.
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