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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.
How 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.Dividing 2 on both 12 and 16 as 2 is the common factor: $\frac{12}{2}$ = $6$.$\frac{16}{2}$ = $8$. So, 12: 16 is simplified into 6: 8.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.