My Lynch-based method also likes financial intermediaries to have an equity-to-assets ratio of at least 5% and a return on assets of at least 1%.
Leverage is the ratio of capital to liabilities (or to assets perhaps) but it is not, never has been and never will be any ratio of assets to umm, assets, as is being claimed here.
While many U.S. banks still have leverage ratios that are 10 times their assets, the banks of Germany have a leverage ratio 32 times their assets, and French banks are leveraged 26 times their assets.
Mr. Keffer says that while he generally doesn't like actively managed funds, the Vanguard fund's balanced mix of assets and low expense ratio make it attractive.
Problems may be worse for smaller companies and the subsidiaries of foreign firms, where pension funds usually have a lower ratio of assets to liabilities, says Stephen Yeo of Watson Wyatt.
ECONOMIST: Company pension funds are being saved from destruction
Its ratio of assets (loans and investments) to loss-absorbing equity capital is a fraction over 20 times, down from 50 times in the autumn of 2008, when it was rescued from the brink by taxpayers.
The aggregate tier one common capital ratio - assets held in reserve as a buffer against financial troubles - would fall from an actual 11.1% in the third quarter of 2012 to 7.7% in the fourth quarter of 2014 in the hypothetical stress scenario.
According to Morningstar.com, the ten largest mutual funds by assets had an average turnover ratio of almost 75%.
FORBES: Want to Boost Investment Returns? Start with Tax Management
Liquidity for major non-financial corporations has never been better as measured by the high ratio of liquid assets to current liabilities.
FORBES: Three Horsemen Of The Shopping Apocalypse: Apple, Google And Amazon
This is why a high current ratio (current assets divided by current liabilities) raises my level of skepticism when I look at a company.
FORBES: Buffett: Don't Be An EPS Worshipper, Look For Penny-Pinchers
As you would expect, in stressed parts of the eurozone the growth in secured borrowing has been exceptionally rapid: between 2005 and 2011, the ratio of encumbered assets to total assets increased tenfold for Greek banks, to one third of the total.
The June funded ratio, which measures assets to liabilities. is only 74% for CalPERS even using a high-rate of return assumption for its investments.
FORBES: New Study: With Giant Pension Debts, California Is Screwed
On the one hand, the ratio of capital to assets would be boosted very significantly in "good" RBS, because some loans and investments with very high risk weights (in the jargon) would have been detached.
It's yielding 4.8% and has a fortresslike tangible equity ratio (capital minus intangible assets) of 13.9%.
The problem is that until banks have all the capital they need, and as I have already mentioned, all the banks will be sorely tempted to boost the ratio of their capital to assets by lending less, to shrink the denominator in the calculation.
Kalamazoo has a 14% capital ratio and 39% of its assets in cash and securities.
The key figure participants should focus on is the investment expense ratio charged by mutual funds for assets you hold in the plan.
Indeed, a casual look at the ratio of corporate profits to net assets since the early 1950s shows two peaks: in the mid-1960s and late-1990s, both periods of robust growth.
In the meantime the total number of banks in the US continues to decline while the ratio of tangible equity to tangible assets stands higher than any time in the 1984-2010 period.
Banks need to keep a ratio between the value of their assets and the amount of money they're lending out and because of this mortgage crisis and because of the fears surrounding it, the value of the assets they have on their books has fallen.
In regards to leverage, Basel III introduced a minimum 3% leverage ratio and two required liquidity ratios: (1) the Liquidity Coverage Ratio, which requires a bank to hold high-quality liquid assets to cover its total net cash outflows over 30 days, and (2) the Net Stable Funding Ratio, which requires the available amount of stable funding to exceed the required amount of stable funding over a one-year period of extended stress.
FORBES: Basel Barriers: How capital requirements would impede progress in the sovereign debt crisis
The report also noted that Raymond James Bank's ratio of capital to risk-weighted assets was a healthy 10.2%.
On Dexia, it was only on July 15 that the European Banking Authority disclosed that this retail and public-sector finance bank would have a ratio of core Tier One capital to assets of 10.4%, even after incurring notional losses from harsh simulated financial and economic conditions.
Along with five others, they had been forced to draw up restructuring plans after falling short of the 8% ratio of capital to risk-weighted assets that is considered the acceptable minimum by international financial regulators (by more than six percentage points in the case of Commercial Bank of Korea).
The ratio of short term liabilities to short term assets has never been lower.
The main complaint is for a higher leverage ratio that will measure actual equity against total assets.
FORBES: Basel Barriers: How capital requirements would impede progress in the sovereign debt crisis
Since the middle of 2007, Morgan Stanley has raised about twenty billion dollars in new capital and cut in half its leverage ratio the total value of its assets divided by its capital.
Mr Osborne will also say the sale's valuation of Northern Rock's "price-to-book value ratio" - that is, its assets minus its liabilities - is higher than peers Barclays, Lloyds TSB or the Royal Bank of Scotland.
BBC: Northern Rock: Osborne to reveal EU deal over 2013 sale
For domestic actively managed funds the (unweighted) average annual expense ratio has dipped from 1.56% of assets in 2003 to 1.45% today.
In the past decade Vanguard's average expense ratio has fallen from 0.42% of assets annually to 0.27%--even as for-profit fund groups have been larding on ever higher expenses.
应用推荐