Tangible common equity ratio is a way to measure how much a company’s equity is based on its physical assets. It is calculated by dividing its tangible common equity by its tangible assets. Tangible common equity is the value of a company’s equity after subtracting intangible assets such as goodwill, licenses, trademarks, copyrights, etc. Tangible assets are the value of a company’s assets after subtracting intangible assets. The ratio shows how much equity a company has for every dollar of physical assets. The ratio can be used to assess a company’s financial strength and risk. A higher ratio means that a company has more equity and less debt, which can make it more resilient to losses. A lower ratio means that a company has more debt and less equity, which can make it more vulnerable to losses. The formula for tangible common equity ratio is: Where: - Tangible common equity (R0130, tangible_common_equity) is the value of a company’s equity minus intangible assets. - Tangible assets (R0131, tangible_assets) are the value of a company’s assets minus intangible assets.