Common-size analysis is a powerful tool for financial analysis and decision-making. Common-size analysis is a form of ratio or metric analysis that states financial statement amounts as percentages of a base amount.
Common-size analysis is useful for comparing the financial performance and position of different companies, especially those of different sizes. It also helps to identify trends and patterns over time within a company and across entities. This is very useful for business environmental analysis, peer benchmarking, and building financial projections.
You may already do some forms of common-size analysis, but may not know all the ways it can provide insights and improve projections.
Course Publication Date:
June 21, 2024
This course is available with
NO ADDITIONAL FEE if you have an active
self study membership or
all access membership or can be purchased for
$15.00!
| Author: | Rob Stephens |
| Course No: | FIN-STATEMTS-90024 |
| Recommended CPE: | 1.50 |
| Delivery Method: | QAS Self Study |
| Level of Knowledge: | Basic |
| Prerequisites: | None |
| Advanced Preparation: | None |
| Recommended Field of Study: | Finance
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Learning Objectives
- Identify the two types of common-size analysis.
- Recall the formulas for common-size analysis.
- Recall how to build projections with common-size analysis.