Common-size analysis expresses each item in a financial statement as a percent of a base amount.

Name: Common-size analysis expresses each item in a financial statement as a percent of a base amount.
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Common-size analysis involves converting each item in a financial statement to a percentage of a common base amount, such as total assets or net sales. This allows for easier comparison of financial data between companies or over time.

Common-Size Analysis Expresses Each Item in a Financial Statement as a Percent