Description

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 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 Video based format. https://www.illumeo.com/courses/common-size-financial-analysis