Common Size Income Statement

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DEFINITION of 'Common Size Income Statement'

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.

 

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BREAKING DOWN 'Common Size Income Statement'

 

Common Size Income Statement

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

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