Close Navigation
.

Common-Size Financial Statement

Trading Term

A common-size financial statement presents each line item as a percentage of a common base. Income statement items are usually expressed as a percentage of revenue, while balance sheet items are shown relative to total assets.

This format allows investors to compare companies of different sizes more easily. It may also reveal changes in operating expenses, profit margins, asset composition, debt, or working-capital requirements.

IBKR Campus Newsletters

This website uses cookies to collect usage information in order to offer a better browsing experience. By browsing this site or by clicking on the "ACCEPT COOKIES" button you accept our Cookie Policy.