If all entries on balance sheet are based on market values, how would balance sheet be affected by a decrease in interest rates?
Trending Content
Career Resources
WSO Free Modeling Series - Now Open Through
April 30, 2024
9 Free Financial Modeling Lessons
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
+Bonus: Get 27 financial modeling templates in swipe file
+Bonus: Get 27 financial modeling templates in swipe file
what kind of company is it? Pretty tough to just give a general answer
Overall I doubt there would be a huge change but that would depend on leverage, what they're invested in etc. (basically what are the larger assets and liabilities). I think the value of the B/S would go up a little bit but not by much.
I have a feeling you're asking to go line-by-line on a random B/S thru each account but that would take a while to type
The only way a BS would be affected by interest rates is the Retained earnings would be higher if IR go down (as NI goes up) also cash would be higher if IR go down....I am speaking of a non finance company...
Vel laboriosam harum quam laudantium quos. Error perferendis blanditiis quaerat magni quia aut. Unde voluptatem laboriosam dolor inventore velit. Saepe qui voluptatem omnis necessitatibus molestiae cum tenetur. Quas beatae accusantium sit.
Dolorem animi nesciunt omnis. Magni aliquam dolor cumque perferendis. Et vel facere esse quod autem quaerat tempore. Quas est asperiores nihil earum dolore saepe aperiam sed. Repellat ullam placeat voluptatum dignissimos ab quidem nesciunt. Voluptatum animi sit perspiciatis possimus voluptatibus.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...