In this video, we will explain What is Common Size Statements, its types, uses, and calculations. What is a Common Size Statement? A common size statement means all items of an income statement brought under a common denominator. In a common size statement, each element of financial statements (both Income Statement and Balance Sheet) is shown as a percentage of another item. There are three types of analyses for Common Size Statements: – Horizontal and Trend Analysis – Vertical Analysis – Ratio Analysis Uses of Common Size Statement: – Easy comparison of financial reports of companies – Promotes effective management decision – It gives a perfect indication of how much sales revenue improved or declined #wallstreetmojo, #commonsizestatements For more details, you can refer to our article at – https://www.wallstreetmojo.com/common-size-statement/ Subscribe to Our Channel – Youtube ► https://www.youtube.com/channel/UChlNXSK2tC9SJ2Fhhb2kOUw?sub_confirmation=1 LinkedIn ► https://www.linkedin.com/company/wallstreetmojo/mycompany/ Facebook ► https://www.facebook.com/wallstreetmojo Instagram ► https://www.instagram.com/wallstreetmojoofficial/ Twitter ► https://twitter.com/wallstreetmojo
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