Common-sized income statement is a statement that shows the financial performance of a company by showing net results that means the profit or loss incurred during the accounting period. Common-sized income statement is also known as Vertical Analysis. It is a technique which is used to analyze the income statement.

Common-sized income statement is a statement in which each item is reported as a percentage of sales. This statement is mainly used for analysis where each item in the statement is expressed as a percentage of sales. This statement is used to compare performance between companies or between time periods of a company.