Worksheet: Balance sheet
Deriving net cash
This note is part of the Pier Review reference material.
Previous worksheet: Accounts. Next worksheet: Spread.
The Balance sheet worksheet within the model performs fives functions.
It draws together in one place the entries on the balance sheets which are laid out separately on the Accounts worksheets. There are normally five accounts worksheets, each covering one year. (Columns J to M).
It shows which of the headings are considered by Pier Analysis to be cash, or its opposite, debt, so that they can be combined into a Net Debt figure. (Columns P and R.) Deriving this value is the principal job of this worksheet, since the number is needed to arrive at an Enterprise value figure on the Value for money analysis worksheet.
It similarly shows which of the headings are considered by Pier Analysis to be pension deficits or other retirement liabilities. Pier Analysis considers these to be a form of debt. (Columns P and S.)
It shows how the Net Debt and Pension figures have evolved over time. (Columns V to AF.)
It shows how the headings have evolved over time, expressed as a percentage of the revenue of the relevant years. This can help discern unexpected trends in the values. (Columns AH to AL).
Previous worksheet: Accounts. Next worksheet: Spread.
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