Common-Size Financial Analysis

Course Overview:

Common-size analysis is a powerful tool for financial analysis and decision-making. Common-size analysis is a form of ratio or metric analysis that states financial statement amounts as percentages of a base amount.
 
Common-size analysis is useful for comparing the financial performance and position of different companies, especially those of different sizes. It also helps to identify trends and patterns over time within a company and across entities. This is very useful for business environmental analysis, peer benchmarking, and building financial projections.
 
You may already do some forms of common-size analysis, but may not know all the ways it can provide insights and improve projections.

You'll learn:

• How to build common-size financial statements
• Ways to perform common-size financial analysis
• Sources for common-size financial statements
• How to build fast and easy financial projections with common-size analysis

 
You'll see examples of analysis and methods the author has used in his career, as well as ideas on other ways you may be able to use common-size analysis.


Learning Objectives:

 Upon completion of this course, you will be able to:

• Identify the two types of common-size analysis
• Recall the formulas for common-size analysis
• Recall how to build projections with common-size analysis