Common Size Balance Sheet – Formula, Calculations (Step by Step) [Video]

Common Size Balance Sheet Chapters 00:00 Introduction 01:00 What is Common Size Balance Sheet 02:00 What is Common Size Balance Sheet 03:52 Common Size Balance Sheet Formula 04:32 Colgate’s Case Study – Common Size Balance Sheet Analysis In this video, we discuss about Common Size Balance Sheets, how to prepare them and why they are so important. What is a Common Size Balance Sheet? Common Size Balance Sheet refers to percentage analysis of balance sheet items on the basis of the common figure as each item is presented as a percentage that is easy to compare. Formula for Common Size Balance Sheet = (Line Item / Total Assets)*100 Uses of Common Size Balance Sheets: 1. Helps in building trend lines to discover the patterns over a specific period of time 2. Helps understand the ratio and percentage of each line item clearly 3. Variations that occurred during expenses are reflected …