Common Size Financial Statement

  

Categories: Accounting

A financial statement that is ordinary in size, but big on percentages. It’s the same amount of paper as an ordinary financial statement, printed on 8 x 11 paper.

A common size financial statement breaks down each account on the records as a percentage of total revenue. This is an important type of financial analysis that allows readers to understand changes in performance on a quarter-by-quarter or year-over-year basis.

Related or Semi-related Video

Finance: What is a Consolidated Balance ...3 Views

00:00

Finance a la shmoop what is a consolidated balance sheet? okay people

00:08

this is a tale of two balance sheets it was the best of times right here and all [Lemonade stand balance sheet appears]

00:13

that cash no debt,, yeah and it was the worst of times and pretty much the

00:17

opposite and then one magical mergy day the two companies possessing these

00:23

two divergent balance sheets decided to you know merge it was a lovely ceremony [Bride and groom holding hands]

00:29

the bride wore white the groom stepped on the glass so then the balance sheets

00:33

were consolidated that is they were merged or combined or fully brought

00:37

together liabilities plus liabilities assets plus assets so the few dollars in

00:43

cash here in the worst of times balance sheet

00:47

well that was tacked on to the cash in the best of times balance sheet and the

00:51

same happened with long term liabilities and short and eventually after the

00:56

wedding night was you know consummated these two balance sheets had merged and [Man and girl standing by their lemonade stands]

01:00

consolidated and looked like this and that's what happens when companies merge

01:06

everything including their balance sheets consolidate let's hope they

01:10

generate lots of tiny cash flows and credits in the future....Mazel Tov

Up Next

Finance: What is a Balance Sheet?
47 Views

What is a balance sheet? A balance sheet is a financial document that public corporations are required to use. It shows their assets and liabilitie...

Finance: What is an Income Statement?
51 Views

What is an income statement? Income statements are important financial documents that all companies keep to track profitability. It shows figures t...

Finance: What is a Consolidated Income Statement?
12 Views

What is a Consolidated Income Statement? Consolidated income statements (or any financial statements) are just the statements of all businesses wit...

Find other enlightening terms in Shmoop Finance Genius Bar(f)