Common Size Statements are also known as: |
Dynamic analysis Horizontal analysis Vertical analysis External analysis |
Vertical analysis |
In Common size Statements each item on the financial statement is expressed as a percentage of a common base, typically a key figure such as total revenue or total assets. By using percentages, it becomes easier to compare the relative proportions of different items within a single period or between different companies. Vertical analysis is another name for the analysis made through the common size statements. |