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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.
Calculating the debt-to-equity ratio is simply a matter of taking the amount of money a company uses to finance its operations and dividing that by the total available capital. For example, a business that has accumulated $50 million in debt and has $150 million in assets has $200 million in available capital.