Common-Size Financial Analysis (Video) (Course Id 2390)

• Who is this course for?
  This course is designed for anyone needing Continuing Professional Education (CPE), particularly CPAs, accountants, and finance professionals looking to strengthen their financial analysis skills.

• What is this course about or what problem does this course solve?
  The course teaches how to perform common-size financial analysis, which helps standardize financial statements for easier comparison across companies and time periods, enabling better insights and financial projections.

• How can the knowledge from this course be used?
  Learners can apply this knowledge to build and analyze common-size financial statements, benchmark peers, assess trends, and create faster and more accurate financial projections.

• Why is this course important to a CPA, Accountant, or IRS Enrolled Agent?
  It enhances their ability to conduct in-depth financial analysis, making them more effective in business evaluation, decision-making, and advisory roles.

• When is this course relevant or timely?
  This course is especially timely when evaluating multiple businesses, conducting year-over-year financial reviews, or preparing financial forecasts and plans.

• How is a course like this consumed or used?
  The course is a QAS Self Study video with accompanying text, includes review and exam questions, and is completed online at the participant’s pace, requiring no prerequisites or additional materials.

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.

Video - NASBA QAS - Text - NASBA Registry - 2390

Course Learning Objectives

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

Chapter 1 - Common-Size Financial Analysis

Chapter 1 Review Questions

Glossary-Index