>>Financial Ratios
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TCE (tangible common equity)/RWA (risk-weighted assets) TCE/RWA Ratio is most commonly used to evaluate the capital strength of a bank. This parameter particularly helps investors and rating agencies to assess the value of a banking institution's core capital position minus intangibles and non-controlling interest. TCE equals shareholders equity (Total Equity Capital) minus intangible assets, preferred [...]

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Tier 1 Leverage Ratio

The Tier 1 leverage ratio is the ratio that is most strongly associated with the true amount of capital that is being leveraged and therefore is a good way to understand a banks current leverage. Tier 1 Leverage ratio defines the connection between a banks adjusted total assets (average total consolidated assets) and it's core [...]

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Texas Ratio (Modified)

The Modified Texas Ratio formula has been altered to take into account new rules that force banks to bring onto their balance sheet non-performing government-secured loans at face value, despite the value that they were acquired at or whether they are just being serviced by the bank. These non-performing government-secured loans are added into the [...]

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Tangible Common Equity

Tangible Common Equity (TCE) is Total Equity Capital minus items that are either intangible or not controlled by common shareholders. To calculate the tangible common equity for banks: intangible assets, preferred equity, and minority interest are subtracted from the total amount of shareholders equity (Total Equity Capital). The resulting TCE value gives a conservative estimation of [...]

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Texas Ratio

The Texas Ratio is a financial ratio that is used to measure the credit standing of banks or credit unions. It is a system that identifies early warning signs of problematic financial institutions regarding their credit. The ratio shows a comparison between a banks tangible common equity capital and its total troubled loan portfolio (Non-performing [...]

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Net Worth Ratio

The Net Worth Ratio is a measure of the capital strength of a credit union. The formula is calculated below: Net Worth (Retained Earnings) / Total Assets Where the numerator in the formula is retained earnings (this consists of regular reserves and undivided earnings of the credit union) and the denominator is the credit unions [...]

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Tier 1 Capital Ratio

Tier 1 Capital Ratio (also called the Tier 1 Risk Based Capital Ratio) divides a bank's core equity capital by the total amount of its risk weighted assets (RWA). It is one of a handful of ratio that help bank regulators understand the capital adequacy of a bank.

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Texas Ratio Trend

It is the trend analysis of the Texas Ratio. The Texas Ratio Trend takes into account the change in a bank or credit unions Texas Ratio over a certain period of time (our Texas Ratio Trend measures quarter to quarter change) and shows whether the trend is rising (is bad) or declining (is good). The [...]

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