Common Size Income Statement

Common Size Income Statement

An income statement in which each account is expressed as a percentage of the value of sales. This type of financial statement can be used to allow for easy analysis between companies or between time periods of a company.

Notes:

Common size income statement analysis allows an analyst to determine how the various components of the income statement affect a company's profit.

See also: Accounting, Cost of Goods Sold - COGS, Common Size Balance Sheet, Common Size Financial Statement, Generally Accepted Accounting Principles - GAAP, Income Statement, Profit