Common Size Income Statement

What does it Mean? An income statement in which each account is expressed as a percentage of the value of sales. This type of financial statement can be used to allow for easy analysis between companies or between time periods of a company.


Investopedia Says...


Common size income statement analysis allows an analyst to determine how the various components of the income statement affect a company's profit.

Terms Related Links

Accounting
Common Size Balance Sheet
Common Size Financial Statement
Cost of Goods Sold - COGS
Generally Accepted Accounting Principles - GAAP
Income Statement
Profit

Terms Related Links
Understanding The Income Statement - Learn how to use revenue and expenses, among other factors, to break down and analyze a company.

Introduction To Fundamental Analysis - Learn this easy-to-understand technique of analyzing a company's financial statements and reports.

Advanced Financial Statement Analysis - Learn what it means to do your homework on a company's performance and reporting practices before investing.



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