Analyze A Common Size Balance Sheet, Income Statement and Other Financial Statements – Common Size Analysis

What is the Difference Between a Common Size Balance Sheet and a Regular Balance Sheet?

Common Size Analysis of Financial Statements involves looking at the numbers on the financial statement as a percentage of a total rather than their absolute value. Typically investors will look at a company’s common size balance sheet and common size income statement.

This is helpful when not only looking at a single company‚Äôs financial statements, but also comparing multiple business of different sizes at one time. Let’s take a look at an example of a normal balance sheet and a common size balance sheet for several companies:

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