Applies to banks and trust companies. Year-end assets divided by year-end total equity (capital plus reserves). A low capital ratio is good. It indicates that a higher proportion of the company's assets are financed by shareholders' equity and reserves (as opposed to debt or deposits), which would make the company stronger in an economic downturn.
The ratio for a financial guaranty insurer of aggregate net exposure to statutory capital.
Equity relative to total assets.
is between a bank's capital and reserves on the one hand, and its total assets (loans) on the other.
The ratio of a firm's capital to its assets.
A measure of profitability, determined by dividing stockholders equity by total assets.