• 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.