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Capital Adequacy Ratio (CAR) also known as Capital to Risk (Weighted) Assets Ratio (CRAR), [1] is the ratio of a bank's capital to its risk. National regulators track a bank's CAR to ensure that it can absorb a reasonable amount of loss and complies with statutory Capital requirements. It is a measure of a bank's capital.
Financial ratios quantify many aspects of a business and are an integral part of the financial statement analysis. Financial ratios are categorized according to the financial aspect of the business which the ratio measures. Profitability ratios measure the firm's use of its assets and control of its expenses to generate an acceptable rate of ...
The Net Stable Funding Ratio seeks to calculate the proportion of Available Stable Funding ("ASF"), via equity and certain liabilities, over Required Stable Funding ("RSF") via the assets. Sources of Available Stable Funding includes: customer deposits, long-term wholesale funding (from the interbank lending market ), and equity .
The total-debt-to-total-assets ratio is one of many financial metrics used to measure a company’s performance. In this case, the ratio shows how much of a company’s operations are funded by debt.
The asset turnover ratio is a financial metric that evaluates how effectively your business uses its assets to produce revenue. The ratio is used to measure the efficiency of your company’s ...
A current ratio below 1.0 suggests that a company’s liabilities due in a year or less are greater than its assets. A low current ratio could indicate that the company may struggle to meet its ...
ROIC = NOPAT / Average Invested Capital There are three main components of this measurement: [2] While ratios such as return on equity and return on assets use net income as the numerator, ROIC uses net operating income after tax (NOPAT), which means that after-tax expenses (income) from financing activities are added back to (deducted from) net income.
Investors use the return on assets ratio formula to evaluate a company. The greater a return, the higher valuation investors are likely to provide.