A critical metric used to evaluate a bank's ability to meet its liabilities, ensuring it maintains a sufficient buffer to absorb potential losses and protect the interests of depositors and creditors.
Capital Employed is the total amount of capital that a company uses to generate profits and includes shareholder's equity and long-term debt, or the sum of fixed and net current assets. This metric is pivotal in ratio analysis for assessing the efficiency and profitability of a company's capital investments.
Contributed capital, also known as paid-in capital, refers to the total value of cash and other assets that shareholders have directly invested in a company in exchange for stock. This equity portion represents funds that are raised and used for the growth and operational needs of the business.
The Debt-to-Equity Ratio is a financial metric that indicates the relative proportion of shareholders' equity and debt used to finance a company's assets.
Donated surplus, also known as donated capital, refers to the contributions of cash, property, or the firm's own stock freely given to the company. It is a component of shareholders' equity that arises when such contributions are made by stakeholders without the expectation of anything in return.
The profit a company generates that is available for distribution as dividends to the holders of ordinary shares.
Permissible Capital Payment (PCP) relates to how much cash or other financial considerations a company is allowed to return to shareholders according to legal or regulatory standards, primarily through processes such as share buybacks or reductions in capital.
Preference share capital refers to the portion of a company's capital that comes from issuing preference shares, which give holders preferential dividends but typically lack voting rights.
Rate of Return on Equity (ROE) measures the profitability of an investment, focusing on net income generated by shareholders' equity. It provides insights into how efficiently a company uses its equity base to generate profits.
Real Terms Accounting (RTA) is a system of accounting where the effects of changing prices are measured by their impact on a company's financial capital, to ensure its value remains constant in real terms. This involves assessing assets at their current cost and defining profit as any surplus after maintaining shareholders' equity.
A financial statement summarizing the performance of an organization during a financial period, covering recognized gains and losses, dividend payments, and capital changes in shareholders' equity. Essential under the Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102).
A restricted surplus refers to the portion of shareholders' equity that is not available for dividend distribution to shareholders, often due to legal or regulatory requirements.
Return on Equity (ROE) is a financial metric that assesses a company's ability to generate profit from its shareholders' equity. It is calculated by dividing net income by shareholders' equity.
Return on Equity (ROE) is a measure of financial performance, determined by dividing net income by shareholders' equity. ROE is an essential metric for evaluating a company's profitability and efficiency in generating profits from its equity.
Senior capital refers to the financial contributions in the form of secured loans provided to a company, which are prioritized for repayment before other types of financial claims during liquidation.
Shareholders' equity represents the owners' claim after subtracting total liabilities from total assets. It is a crucial metric for understanding a company’s financial health and includes components like share capital and reserves.
The Statement of Changes in Equity (SOCE) is a financial document that outlines the changes in shareholders' equity over a reporting period. It highlights changes due to transactions with owners, profits, losses, and other comprehensive income.
A detailed summary that outlines the changes in equity for a company over a financial period, reflecting the sources of funding and how funds have been utilized.
A financial statement showing the extent to which shareholders' equity has increased or decreased from all the gains and losses recognized during a specific period, excluding transactions with shareholders.
