Tangible total capital (TCE) is a measure of a company’s physical capital that is used to assess a financial institution’s ability to handle potential losses.
Measuring a company’s TCE is especially useful for valuing companies that own a large amount of preferred stock, such as US banks that received federal bailouts during the 2008 financial crisis.
The TCE ratio (TCE divided by tangible assets) is a measure of capital adequacy in a bank. This ratio measures the firm’s tangible total capital in terms of the firm’s tangible assets.
Performance Based Management (ABM) is a means of analyzing a company’s profitability by looking at every aspect of its business to determine its strengths and weaknesses.
A ballpark figure is a rough estimate of what something might mean in numerical terms when a more precise number is estimated, such as the cost of a product.
The binomial distribution is a probability distribution that generalizes the probability that a value will take on one of two independent values given a set of parameters or assumptions.
Share capital is the number of ordinary and preferred shares that the company has the right to issue and which are accounted for on the balance sheet as part of share capital.
The Central Limit Theorem (CLT) states that the distribution of sample means approaches a normal distribution as the sample size increases, regardless of the distribution of the population.