Common-Size Financial Analysis (Course Id 2396)

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 Learning Objectives

Upon completion of this course, participants will be able to do the following:

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

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