common-size statement

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.
References in periodicals archive ?
The results are two specialized reports: (1) global financial benchmarks using common-size statement ratios (vertical analysis), and (2) labor-productivity and utilization measures collected across borders.
Common-size statements are used to standardize the financial statement components by expressing them in relation to a relevant base.
Exhibit 6 contains summary common-size statements of cash flow for Automatic Data Processing, Inc.