### Question
Can you define what capital ratio means?


### Answer
**Capital ratio** is defined as the following in *20 U.S.C. § 1087*:

> the ratio of total stockholders’ equity, as shown on the Association's most recent quarterly consolidated balance sheet prepared in the ordinary course of its business, to the sum of—


(i) the total assets of the Association, as shown on the balance sheet prepared in the ordinary course of its business

#### Citation:
  - *20 U.S.C. § 1087*
  - Heading: **CHAPTER 27-NATIONAL VOCATIONAL STUDENT LOAN INSURANCE > SUBCHAPTER IV-STUDENT ASSISTANCE > Part B-Federal Family Education Loan Program**

