To determine the profitability of banks, simply looking at the earnings per share isn't quite enough. It's also important to know how efficiently a bank is using its assets and equity to generate ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Chip Stapleton is a Series 7 and Series 66 ...

Liquidity, or the amount of cash or cash-like assets on the balance sheet, is critical for any bank. Banks must meet funding needs for their operations, they must be able to repay their own debts, and ...

To calculate your debt-to-income ratio, add up your monthly debt payments and divide this figure by your gross monthly income. While every lender and product will have different ranges, a DTI of 50 ...

To calculate a bank's return on assets, you need to know two pieces of information. First, you need to find the net income, which can be found on the bank's income statement. Next, you need to find ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Chip Stapleton is a Series 7 and Series 66 ...

Bank liquidity is crucial; lack of it can lead to a bank's quick failure. LCR must be 100% or higher, calculated by dividing HQLA by net cash outflow. Investors can assess bank stability by checking ...