Common Sized

Explanation: A Common Sized Statement is a financial statement presentation format where each line item is expressed as a percentage of a base value. For Common Sized Income Statements, each line item is typically expressed as a percentage of total revenue. In Common Sized Balance Sheets, each asset, liability, and equity item is usually expressed as a percentage of total assets. In Common Sized Cash Flow Statements, each cash flow item is typically expressed as a percentage of total cash flow from operations, investing activities, or financing activities. This presentation allows for easy comparison of the relative proportions of different components within the financial statement, regardless of the company’s size or scale.

Example: Let’s consider a Common Sized Income Statement for TCS, where each line item (such as revenue, expenses, and net income) is expressed as a percentage of total revenue. This presentation format helps in analyzing the composition of expenses relative to revenue and identifying trends or anomalies over time or compared to industry peers. Similarly, in a Common Sized Balance Sheet for TCS, each asset, liability, and equity item would be expressed as a percentage of total assets. This format allows for easy comparison of the relative proportions of different components within the financial statement, regardless of the company’s size or scale.

You can view the Common Sized statements for various metrics for any company on Radar.