Common size statement
Common size statement a financial statement expressed in percentages of the total rather than dollar amounts. It shows that the relative amount that each and every component participate to the total. It allows for the comparison of firms of various sizes.
Vertical Analysis and Common Size Statements: Definition and Explanation of Vertical Analysis and Common Size Statements: Vertical analysis is the procedure of preparing and presenting common size statements. Common size statement is one that shows the items appearing on it in percentage form as