Common-size analysis

Common-size analysis

The representing of balance sheet items as percentages of assets and of income statement items as percentages of 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.
References in periodicals archive ?
A common-size analysis is employed with every financial statement item divided by sales in each corresponding year and the common-size results are also reported in Tables 1 and 2.
TABLE 1 WALCO COMPANY'S INCOME STATEMENTS AND COMMON-SIZE ANALYSIS FROM 2008 TO 2012 Walco Company's Income Statements for the years ended August 31 data) (Dollars in Millions, except per share 2012 2011 2010 Net Sales 32,505.
The course details the purpose, construction, pertinent ratios, and common-size analysis of balance sheet.