Ratio analysis, common-size analysis, and analysis of the dollar and percentage changes in each income statement item over the previous year are useful for this purpose.

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Ratio analysis, common-size analysis, and analysis of changes in income statement items are all useful tools for financial statement analysis, particularly in assessing a company's financial performance over time. These methods can provide insight into trends in revenue, expenses, profits, and other key financial metrics, and can help investors and analysts identify potential areas of concern or opportunity.

Ratio Analysis, Common-Size Analysis, and Analysis of the Dollar and Percentage