Common-size statements are useful when comparing a company's performance against that of a company of a different size.

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Common-size statements allow for a comparison of a company's financial statements to its own historical performance and also to the performance of other companies, regardless of size. This is because common-size statements express financial data as percentages, which normalizes the data and makes it easier to compare.

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