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 is a technique of presenting financial statement data in a standardized format by expressing each item as a percentage of a base amount. This helps in analyzing and comparing financial statements of different companies or different periods.

Common Size Analysis Expresses Each Item in a Financial Statement