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 ?
The data from income statements is also more detailed than other sources and includes common-size analysis for rent, advertising, interest, employee benefits, and officers' compensation.
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.