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For the Texas Ratio calculation, a bank's available capital is the sum total of its equity capital and its loan loss reserves. Equity capital is essentially the book value of the bank -- its total assets minus its liabilities.
A ratio is a comparison between two numbers and it is described as a fraction. If x and y are any two numbers, then the ratio of x to y is $\frac{x}{y}$ , $(y \neq 0)$.ow to Calculate Ratio. Example: The ratio of girl to boy in a class is 12:16. To simplify the ratio we can make the numbers into smaller ratios so as to compare easily. This can be done by dividing the ratio by same number on each side.