or capital adequacy ratio, of a bank. This ratio measures a bank's financial stability by measuring its available capital as a percentage of its risk-weighted credit exposure. Its purpose is to ...

These financial ratios include the debt-to-capital ratio, the debt-to-equity (D/E) ratio, the interest coverage ratio, and the degree of combined leverage (DCL). Analyzing risk is useful for both ...

A bank’s creditors and depositors are better protected from bank distress when the ratio of capital to total assets is high. There are a number of reasons for this. First, because equity holders are ...

Measurements of an investment bank's viability include its price-to-earnings ratio, returns on assets and equity, and return on capital employed. Understanding how efficiently a bank can acquire ...

Reviewed by Chip Stapleton There are numerous financial ratios that help determine the financial health of a company. One of the most important financial ratios, and one carefully regarded by ...