Common Size Analysis

___Suppose somebody told you that a particular company had $20 billion in earnings one year. good or bad? The answer depends on numerous factors, including:

  • How much profits did the company book in order to attain those earnings?
  • How much did competitor of a similar size earn?
  • How much did the company earn last year?

Common size analysis is one instrument that allows investors to compare companies across time and with other companies.

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Total Entity

Compare what proportion that an outlay reduces sales, particularly useful when comparing previous years.It is also useful when comparing similar companies of different sizes to see if they have the same financial formation.

Financial announcement

Click Balance sheet__ Cash Flow report__ income report


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