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Common-Size Statement
(redirected from Common-Size Statements)

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Common-size statement
A statement in which all items are expressed as a percentage of a base figure, useful for purposes of analyzing trends and changing relationship among financial statement items. For example, all items in each year's income statement could be presented as a percentage of net sales.

Common-Size Statement
Any financial statement in which the items are expressed as percentages of some figure instead of as dollar amounts. For example, a common-size statement may express all cash inflows as a percentage of total revenue. A common-size statement is most useful when one attempts to compare a company to similar companies of different size. It is also called a one hundred percent statement.

common-size statement
A financial statement that has variables expressed in percentages rather than in dollar amounts. For example, items on an income statement are shown as a percentage of revenue or sales, and balance sheet entries are displayed as a percentage of total assets. Common-size statements are used primarily for comparative purposes so that firms of various sizes can be equated. Also called one hundred percent statement.


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Common-size statements are used to standardize the financial statement components by expressing them in relation to a relevant base.
 
 
 
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