Common-size statements are useful when comparing a company's performance against that of a similar, but not necessarily the same-sized, company.

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Common-size statements standardize financial information by expressing each line item as a percentage of a common base, such as total assets, total revenue, or total expenses. This enables meaningful comparisons between companies of different sizes, as well as for trend analysis over time.

Common-Size Statements Are Useful When Comparing a Company's Performance Against