Balance Sheet Leverage in the Financial System. Balance Sheet | Goldman Sachs Total Assets =...
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Transcript of Balance Sheet Leverage in the Financial System. Balance Sheet | Goldman Sachs Total Assets =...
![Page 1: Balance Sheet Leverage in the Financial System. Balance Sheet | Goldman Sachs Total Assets = $859,914,000 Total.](https://reader035.fdocuments.us/reader035/viewer/2022081908/56649e425503460f94b3599c/html5/thumbnails/1.jpg)
Balance SheetLeverage in the Financial System
![Page 2: Balance Sheet Leverage in the Financial System. Balance Sheet | Goldman Sachs Total Assets = $859,914,000 Total.](https://reader035.fdocuments.us/reader035/viewer/2022081908/56649e425503460f94b3599c/html5/thumbnails/2.jpg)
Balance Sheet | Goldman Sachs
http://finance.yahoo.com/q/bs?s=GS,+&ql=1
Total Assets = $859,914,000
Total Liabilities = $778,285,000
Total Equity (Net Worth) = $81,629,000
![Page 3: Balance Sheet Leverage in the Financial System. Balance Sheet | Goldman Sachs Total Assets = $859,914,000 Total.](https://reader035.fdocuments.us/reader035/viewer/2022081908/56649e425503460f94b3599c/html5/thumbnails/3.jpg)
Balance Sheet | Goldman Sachs
Leverage = Total Liabilities/ Net Worth (Equity)
778,285,000/ 81,629,000 = 9,53
For every $10 of assets the bank holds, $9,53 is financed by borrowing and $0,47 input by shareholders.
(What proportion of debt and equity, is the company using to finance their assets?)
![Page 4: Balance Sheet Leverage in the Financial System. Balance Sheet | Goldman Sachs Total Assets = $859,914,000 Total.](https://reader035.fdocuments.us/reader035/viewer/2022081908/56649e425503460f94b3599c/html5/thumbnails/4.jpg)
Balance Sheet | Goldman Sachs
For each $100 of assets, how much is financed with equity and how much with debt?
Equity Ratio = Equity/Assets
81,629,000/859,914,000 = 0,09
For each $100 of assets, $9 is financed by Equity and $91 is financed by Liabilities
(Proportio of equity used to finance Company’s assets)
![Page 5: Balance Sheet Leverage in the Financial System. Balance Sheet | Goldman Sachs Total Assets = $859,914,000 Total.](https://reader035.fdocuments.us/reader035/viewer/2022081908/56649e425503460f94b3599c/html5/thumbnails/5.jpg)
Balance Sheet | Goldman Sachs
By what percentage would assets have to decline in value to bankrupt the Financial Institution?
![Page 6: Balance Sheet Leverage in the Financial System. Balance Sheet | Goldman Sachs Total Assets = $859,914,000 Total.](https://reader035.fdocuments.us/reader035/viewer/2022081908/56649e425503460f94b3599c/html5/thumbnails/6.jpg)
Balance Sheet | AIG
http://finance.yahoo.com/q/bs?s=AIG%2C+&ql=1
Total Assets = $529,109,000
Total Liabilities = $420,948,000
Total Equity (Net Worth) = $108,161,000
![Page 7: Balance Sheet Leverage in the Financial System. Balance Sheet | Goldman Sachs Total Assets = $859,914,000 Total.](https://reader035.fdocuments.us/reader035/viewer/2022081908/56649e425503460f94b3599c/html5/thumbnails/7.jpg)
Balance Sheet | AIG
Leverage?
Equity Ratio?
Bankrupt?