Common Size Balance Sheet

Common Size Balance Sheet

A company balance sheet that displays all items as percentages of a common base figure. This type of financial statement can be used to allow for easy analysis between companies or between time periods of a company.

Notes:

The image above illustrates the difference between a regular balance sheet and a common size balance sheet. In the normal balance sheet, account values are expressed in dollar terms, while in the common size one, each value is listed as a percentage of total assets. This is also done for liabilities, where each liability account is a percentage of total liabilities.

See also: Accounting, Asset, Balance Sheet, Common Size Financial Statement, Common Size Income Statement, Generally Accepted Accounting Principles - GAAP, Income Statement, Liability