Ratings

Return on average assets. Net income (annualized) divided by average (current-period and prior-year-end) assets.

Adjusted return on average assets. Income before extraordinary items (annualized) divided by average (current-period and prior-year-end) assets.

Return on average equity. Net income (annualized) divided by average (current period and prior year-end) equity.

Operating expenses/average assets. Total expenses less loss provision and interest expense divided by average (current period and prior year-end) assets.

Operating expenses/revenues. Total expenses less loss provision less interest expense divided by total revenues.

Interest coverage. Pretax income plus interest expense divided by interest expense.

Net interest margin. Interest income less interest expense (annualized) divided by average (current period and prior year-end) receivables.

Return on average receivables (NUI). Net income divided by average (current-period and prior-year-end) receivables.

Reserves/receivables (NUI). Loss reserves divided by on-balance sheet receivables net of unearned income.

Reserves/delinquencies plus nonaccruals. Loss reserves divided by delinquent and nonaccruing receivables.

Delinquencies/gross receivables. Sixty-plus-day delinquencies divided by gross receivables.

Impaired-asset ratio. Delinquencies plus nonaccruing receivables plus foreclosed assets divided by gross receivables plus foreclosed assets.

Portfolio credit loss. Net charge-off divided by average (current-period and prior-year-end) receivables.

Credit loss coverage of provisions. Loss provision divided by net charge-offs.

Credit loss coverage of reserves. Loss reserves divided by net charge-offs.

Receivables growth. Current-period receivables divided by prior-equivalent-period receivables.

Net losses/liquidations. Net credit losses divided by prior year-end receivables plus volume (current period) receivables less charge-offs.

Loss recovery ratios. Recoveries divided by gross losses. Repossessions and foreclosures divided by gross receivables.

Debt/equity. Total recourse debt divided by equity.

Debt/equity plus reserves. Total recourse debt divided by equity plus loss reserves.

Debt/equity less intangibles plus reserves. Total recourse debt divided by equity less goodwill plus loss reserves.

Short-term debt/total capitalization. Deposits, commercial paper plus other short-term debt divided by total recourse debt plus preferred stock and equity.

Long-term debt/total capitalization. Senior and subordinated recourse debt divided by total recourse debt plus preferred stock and equity.

Equity/total capitalization. Common stock divided by total recourse debt plus preferred stock and equity.

Dividend payout ratio. Dividends divided by net income.

Preferred stock/equity. Preferred stock divided by equity.

Intangibles/total equity. Goodwill divided by total equity