347 647 9001+1 714 797 8196Request a Call
Call Me

Modeling Balance Sheet Drivers

February 23, 2012
, , ,

Till date, we have modeled the historical statements (P/L, B/S & Cash Flow Statement) and P/L drivers. Today’s post is to help you in modeling balance sheet drivers.

Balance Sheet Drivers

Balance sheet drivers are both mixed and pure ratios. By mixed ratio we mean ratios calculated taking into consideration both P/L and B/S line items and pure rations means ratios calculated using only the B/S line items.

Balance Sheet Drivers

A/c receivable Turnover = Revenue/Average Receivable

Days of Account Receivable = 365/A/c Receivable Turnover

I.e. Days of Account Receivable = Average A/c Receivable/ (Revenue/365)

Using the same formula you can calculate the payable in days, calculate prepaid and accrued expenses by calculating year-on-year growth rate and other drivers as %age of revenue.

Please note that this is a simple model and hence the drivers are simple. And also note that we will use these drivers to project the future Balance Sheet of Facebook.

If you find any problem in modeling B/S drivers feel free to discuss this in our comments or email me your queries, we would love to answer you queries.

Next Steps

2moro we will release filled template of historical drivers (both P/L & B/S drivers), so that you can check your progress.

Enroll for the entire Facebook Valuation Program here!

Why go hunting for each individual post on our blog, when the entire Facebook Valuation Program can come right in your inbox? Yes. It's now a simple click away, just provide your email address in the form below, and we will email you the entire 1 month program 1 article a day!!


About the Author

Pankaj Baheti is a CFA Level III Candidate currently working with Pristine. Prior to Pristine, he was working with Achi Group. He has done his Post Graduate Diploma in Management and loves trekking in the hills of Arunachal.


Global Association of Risk Professionals, Inc. (GARP®) does not endorse, promote, review or warrant the accuracy of the products or services offered by EduPristine for FRM® related information, nor does it endorse any pass rates claimed by the provider. Further, GARP® is not responsible for any fees or costs paid by the user to EduPristine nor is GARP® responsible for any fees or costs of any person or entity providing any services to EduPristine Study Program. FRM®, GARP® and Global Association of Risk Professionals®, are trademarks owned by the Global Association of Risk Professionals, Inc

CFA Institute does not endorse, promote, or warrant the accuracy or quality of the products or services offered by EduPristine. CFA Institute, CFA®, Claritas® and Chartered Financial Analyst® are trademarks owned by CFA Institute.

Utmost care has been taken to ensure that there is no copyright violation or infringement in any of our content. Still, in case you feel that there is any copyright violation of any kind please send a mail to and we will rectify it.

Popular Blogs: Whatsapp Revenue Model | CFA vs CPA | CMA vs CPA | ACCA vs CPA | CFA vs FRM

Post ID = 12540