Net Worth Ratio
: The net worth ratio is the comparison between Net Worth and Assets. The financial strength of a credit union can be quickly determined, and compared to others, with the net worth ratio. A "well-capitalized" credit union has a net worth ratio of 7 or higher. Credit unions with net worth ratios between 6-7 are considered "adequately-capitalized credit unions." Net worth ratios below 6 are classified as "undercapitalized credit unions" and are subject to Congressionally-prescribed mandatory supervisory actions.