What is the 'LoanToDeposit Ratio  LTD'
The loantodeposit ratio (LTD) is a commonly used statistic for assessing a bank's liquidity by dividing the banks total loans by its total deposits. This number, also known as the LTD ratio, is expressed as a percentage. If the ratio is too high, it means that banks might not have enough liquidity to cover any unforseen fund requirements; if the ratio is too low, banks may not be earning as much as they could be.
BREAKING DOWN 'LoanToDeposit Ratio  LTD'
In 2008, the FDIC reported that statewide LTD ratios in the United States ranged from a low of 56% in Utah to a high of 170% in North Dakota. The statewide ratios compare all loans to all deposits for all banks with their home base in that state. These ratios are used to determine whether a bank will be allowed to open or acquire a branch outside of its home state, and this ratio is often used by policy makers to determine the lending practices of financial institutions.

Current Ratio
The current ratio is a liquidity ratio measuring a company's ... 
Liquidity Ratios
A class of financial metrics that is used to determine a company's ... 
Cash Ratio
The ratio of a company's total cash and cash equivalents to its ... 
Combined Ratio
A measure of profitability used by an insurance company to indicate ... 
Overall Liquidity Ratio
A measurement of a companyâ€™s capacity to pay for its liabilities ... 
Cooke Ratio
A ratio that calculates the amount of capital a bank should have ...

Investing Basics
Analyze Investments Quickly With Ratios
Make informed decisions about your investments with these easy equations. 
Personal Finance
Texas Ratio Rounds Up Bank Failures
This measure can help investors spot potential trouble in a bank's financials. Find out how. 
Stock Analysis
Biggest Semiconductors Sector Movers, Including MLNX
The market has been doing well after the morning's trading. The Nasdaq has climbed 0.1%; the S&P 500 has risen 0.2%; and the Dow is up 0.3%. Outperforming the market overall, the Semiconductors ... 
Trading Strategies
Financial Ratios to Spot Companies Headed for Bankruptcy
Obtain information about specific financial ratios investors should monitor to get early warnings about companies potentially headed for bankruptcy. 
Personal Finance
The Banking System: Commercial Banking  Key Ratios/Factors
ByStephen D. Simpson, CFA As banks have very different operating structures than regular industrial companies, it stands to reason that investors have a different set of fundamental factors ... 
Stock Analysis
ICICI Bank Limited and Other Big Movers In Financial on September 14, 2012
The Nasdaq has climbed 1.1%, the S&P 500 has risen 0.6% and the Dow is up 0.4% on a good day for the market so far. The financial sector is the category of stocks containing firms that provide ... 
Stock Analysis
Sony Corporation and More Big Movers in Consumer Cyclical on September 17, 2012
The market is having a bad day so far. The Nasdaq is trading down 0.2%; the S&P 500 is down 0.2%; and the Dow has slipped 0.2%. The consumer cyclical sector is a category of stocks that relies ... 
Stock Analysis
Expedia and More Big Movers on the Nasdaq on September 21, 2012
This morning, the Nasdaq has moved little, the S&P 500 has decreased 0.3% and the Dow has been relatively flat. The recent surge in popularity of technological stocks has launched the Nasdaq ... 
Fundamental Analysis
Dynamic Current Ratio: What It Is And How To Use It
Learn why this ratio may be a good alternative to the current, cash and quick ratios. 
Stock Analysis
American Capital Agency Corp. and Other Real Estate Operations Stocks Making Big Moves
The market is currently up, with the Nasdaq moving up 1%, the S&P 500 rising 0.5% and the Dow increasing 0.6%. The Real Estate Operations sector (IYR) is relatively unchanged on a good day ...

What metrics can be used to evaluate companies in the banking sector?
Learn which metrics are most useful to evaluate companies in the banking sector and associated issues with such metrics when ... Read Answer >> 
What role does ratio analysis play in valuing a company?
Learn about the role of ratio analysis in determining company value, including some of the most common ratios used by modern ... Read Answer >> 
Which financial metrics are best for analyzing companies in the chemicals sector?
Learn about some of the key financial metrics that investors and market analysts commonly use to evaluate companies in the ... Read Answer >> 
How do I use ratios to perform a financial analysis?
Learn which ratios are used in fundamental analysis. Find out how analysts measure company performance and financial health ... Read Answer >> 
Why do shareholders need financial statements?
Discover the importance of a company's financial statements for stock shareholders in evaluating their equity investment ... Read Answer >> 
What is the difference between the loss ratio and combined ratio?
Learn about the loss ratio and combined ratio, what the two ratios measure and the main difference between the loss ratio ... Read Answer >>