Creating common-sized balance sheets


show more Creating common-sized balance sheets provides you with in-depth training on Business. Taught by Curt Frye as part of the Excel 2007: Financial Analysis show less
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Creating common-sized balance sheets

Just as you can compare the income statements of two differently sized companies, you can common size entries on their balance sheets to allow for meaningful analysis between those companies. One useful balance sheet element to use as a basis for common sizing is the current liabilities account. The Current Liabilities Account includes account payable, income taxes, short-term unearned revenue, securities lending payable and the even popular, other. Accounts payable is a measure of how much money is owed to creditors for products and services and securities lending payable shows how much money is owed to creditors who purchase bonds, and other debt instruments issued by the company.

In this case, I'm going to use the Total current liabilities as my Common-sizing factor and I'll be comparing the companies' assets. So first we have the Total cash, cash equivalents, and short-term investments. We have Total current assets which includes the cash, but also includes other items th...

Creating common-sized balance sheets
Video duration: 2m 53s 2h 18m Intermediate

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Creating common-sized balance sheets provides you with in-depth training on Business. Taught by Curt Frye as part of the Excel 2007: Financial Analysis

Subject:
Business
Software:
Excel
Author:
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