805:
37:
875:
718:'s tangible common equity. In this example, the company's total equity remained the same, but its preferred equity decreased, thereby increasing common equity (and TCE).
301:
656:
846:
286:
703:
291:
644:. During the financial and economic crisis of 2008–2009, it gained public popularity as a measure of the viability of large
600:
451:
155:
52:
865:
306:
296:
62:
358:
486:
363:
311:
254:
395:
787:"Citi to Exchange Preferred Securities for Common, Increasing Tangible Common Equity to as Much as $ 81 Billion"
771:
348:
737:
839:
786:
651:
When used in a ratio with tangible common assets, it measures a bank's ability to absorb losses (e.g.,
755:
732:
593:
400:
36:
832:
621:
234:
110:
820:
870:
526:
461:
185:
652:
511:
249:
115:
57:
561:
100:
8:
790:
632:, is an uncommonly used measure of a company's financial strength. It indicates how much
586:
551:
546:
521:
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456:
385:
343:
325:
278:
259:
190:
95:
20:
390:
225:
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727:
571:
566:
145:
120:
707:
645:
633:
629:
625:
353:
239:
441:
405:
195:
175:
160:
105:
90:
47:
816:
677:
tangible assets = total assets - intangible assets - goodwill - preferred stock
446:
414:
125:
859:
759:
711:
556:
419:
338:
333:
170:
637:
491:
230:
641:
377:
655:) before becoming insolvent. It is one of the factors considered by the
775:
481:
165:
28:
715:
691:
Leverage ratio = (total assets – intangible assets – goodwill) / TCE
812:
670:
TCE = total equity – intangible assets – goodwill – preferred stock
264:
244:
150:
410:
85:
804:
433:
215:
80:
220:
876:
United States
Generally Accepted Accounting Principles
857:
840:
659:to determine if a bank has become insolvent.
594:
302:International Financial Reporting Standards
847:
833:
640:would receive in the event of a company's
601:
587:
657:Office of the Comptroller of the Currency
738:Intrinsic value (finance) § Equity
858:
772:"Tangible Common Equity for Beginners"
756:"Tangled Tangibles", by Tracy Alloway
292:Generally-accepted auditing standards
799:
684:TCE ratio = TCE / (tangible assets)
307:International Standards on Auditing
13:
653:homeowners defaulting on mortgages
14:
887:
364:Notes to the financial statements
803:
312:Management Accounting Principles
35:
780:
765:
749:
1:
743:
287:Generally-accepted principles
819:. You can help Knowledge by
762:November 23, 2008 blog entry
7:
721:
10:
892:
866:Economic terminology stubs
798:
702:On February 27, 2009, the
697:
662:
733:Return on tangible equity
156:Constant purchasing power
53:Constant purchasing power
487:Accounting organizations
475:People and organizations
235:Amortization (business)
614:Tangible common equity
359:Management discussion
776:baselinescenario.com
622:shareholders' equity
326:Financial statements
279:Accounting standards
793:, February 27, 2009
791:Wall Street Journal
552:Earnings management
522:Positive accounting
396:Double-entry system
386:Bank reconciliation
191:Revenue recognition
815:term article is a
527:Sarbanes–Oxley Act
462:Sarbanes–Oxley Act
391:Debits and credits
226:Cost of goods sold
181:Matching principle
828:
827:
728:Bank stress tests
630:intangible assets
620:), the subset of
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610:
572:Two sets of books
567:Off-balance-sheet
209:Selected accounts
146:Accounting period
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849:
842:
835:
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769:
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708:preferred shares
646:commercial banks
634:ownership equity
626:preferred equity
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39:
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15:
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704:U.S. Government
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328:
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196:Unit of account
176:Historical cost
161:Economic entity
140:
132:
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130:
75:
67:
48:Historical cost
12:
11:
5:
889:
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873:
868:
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837:
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415:General ledger
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55:
50:
44:
41:
40:
32:
31:
25:
24:
9:
6:
4:
3:
2:
888:
877:
874:
872:
871:Balance sheet
869:
867:
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861:
850:
845:
843:
838:
836:
831:
830:
824:
822:
818:
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792:
788:
783:
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773:
768:
761:
760:FT Alphaville
757:
752:
748:
739:
736:
734:
731:
729:
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725:
719:
717:
713:
712:common shares
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570:
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557:Error account
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421:
420:Trial balance
418:
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409:
407:
404:
402:
401:FIFO and LIFO
399:
397:
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379:
374:
373:
365:
362:
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355:
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339:Balance sheet
337:
335:
334:Annual report
332:
331:
327:
322:
321:
313:
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206:
205:
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171:Going concern
169:
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46:
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43:
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38:
34:
33:
30:
27:
26:
22:
18:
17:
821:expanding it
810:
782:
767:
751:
714:to increase
701:
690:
689:
683:
682:
676:
675:
669:
668:
650:
638:common stock
624:that is not
617:
613:
612:
492:Luca Pacioli
413: /
233: /
231:Depreciation
139:Key concepts
111:Governmental
642:liquidation
505:Development
482:Accountants
378:Bookkeeping
297:Convergence
255:Liabilities
186:Materiality
74:Major types
860:Categories
744:References
706:converted
636:owners of
540:Misconduct
166:Fair value
116:Management
58:Management
29:Accounting
716:Citigroup
562:Hollywood
442:Financial
344:Cash-flow
101:Financial
813:economic
722:See also
628:and not
547:Creative
517:Research
447:Internal
434:Auditing
250:Goodwill
245:Expenses
96:Forensic
21:a series
19:Part of
698:Example
663:Formula
512:History
406:Journal
265:Revenue
151:Accrual
457:Report
411:Ledger
354:Income
349:Equity
260:Profit
240:Equity
216:Assets
121:Social
86:Budget
811:This
774:from
452:Firms
81:Audit
817:stub
221:Cash
106:Fund
91:Cost
758:an
710:to
618:TCE
126:Tax
63:Tax
862::
789:,
648:.
23:on
848:e
841:t
834:v
823:.
616:(
602:e
595:t
588:v
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