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 learn in this course:

  • 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 I've used in my career, as well as ideas on other ways you may be able to use common-size analysis.

Course Key Concepts: Common-size analysis, Common-size financial analysis, Metric analysis, Ratio analysis, Peer analysis, Benchmarking, Industry analysis, Financial projections.

Note: This course is also available in Text based format. https://www.illumeo.com/courses/common-size-financial-analysis-text-based-course

Learning Objectives
  • Identify the two types of common-size analysis.
  • Explore and recall the formulas for common-size analysis.
  • Discover and recall how to build projections with common-size analysis.
Last updated/reviewed: March 27, 2024
Prerequisites
Course Complexity: Foundational
No advanced preparation or prerequisites are required for this course.
Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Instructor for this course
Course Syllabus
INTRODUCTION AND OVERVIEW
  Introduction to Common-Size Financial Analysis4:45
  Common-Size Financial Statements14:02
  Internal and External Analysis19:02
  REVIEW QUESTIONS: Internal and External Analysisquiz
  Sources for Common-Size Financial Statements3:20
  Benefits and Users of Common-Size Analysis7:24
  Building Projections from Common-Size Financial Statements8:50
  Key Takeaways5:48
  REVIEW QUESTIONS: Key Takeawaysquiz
CONTINUOUS PLAY
  Common-Size Financial Analysis1:03:10
SUPPORTING MATERIAL
  Slides: Common-Size Financial AnalysisPDF
  Common-Size Financial Analysis Glossary/IndexPDF
REVIEW AND TEST
 FINAL EXAMexam