Common-Size

Common-Size
Financial Software for the Business Professional

The beauty of the Profit Plan common-size income statements and balance sheets is that relative performance can be compared between firms without regard to the actual magnitude of dollars involved. The columns with the actual dollar values can be hidden, leaving only the relative performance values exposed. This works very well for sharing data within trade groups and associations that regularly meet to share insights and expertise.

(The samples included here do include the dollar value columns, so that you can see the general report layout.)

The Common Size Income Statement

This report includes two additional columns for each period.

	Percent of gross sales This column shows all accounts as a percentage of sales. Think of it as a break-down of where each sales dollar goes.
	% of Gross Profit This column shows each account expressed as a percent of gross profit. It shows the markup needed to produce the sales and how the gross profit dollar is distributed.

The Common Size Balance Sheet

This report provides a column showing each account as a percent of Total Assets. Think of it as how the invested and borrowed dollars have been distributed within the firm.

The EnhancedCommon Size Balance Sheet

This enhanced version of the Common Size Balance Sheet includes both a column showing each account as a percent of Total Assets and a column showing each account as a percent of Gross Sales. We all know that firms of difference size have different asset mixes. Larger firms have many advantages in basic "clout" with their vendors, but many efficiency challenges also. The Enhanced Common Size Balance Sheet lets you view trends in terms of both asset mix and sales efficiency!.