What do you mean by Common Size Statements?
Answers
Answer:
The comman size income statement
Explanation:
The comman size income statement is an income statement in which each account is expressed as a percentage of value of sales
Explanation:
The common size statement is an “income statement”, where every account is indicated as “a percentage of the value” of the sale. It is used for vertical analysis, in which in the “financial statement”, each line data is registered as a “percentage of the base”, making it easier to compare.
With the “common size statement analysis”, it is easy to see what is going on in the company's profits and to compare that performance with your peers. Seeing how this performance is changing over time, the common size financial statements help investors to see the trends that cannot uncover the raw financial details.