Introducing common-sizing strategies for analyzing financial statements


show more Introducing common-sizing strategies for analyzing financial statements provides you with in-depth training on Business. Taught by Curt Frye as part of the Excel 2007: Financial Analysis show less
please wait ...

Introducing common-sizing strategies for analyzing financial statements

Financial statements provide vital information to potential investors. But most industries have competitors of various sizes and sales levels. The computer software industry, for example, has competitors including multi-billion dollar corporations, all the way down to smaller shops that produce specially products for limited markets. Comparing sales figures, income and other financial aspects of these diverse companies directly isn't always helpful. But you can perform meaningful analysis on the financial statements of two separate companies using a mathematical technique known as Common-Sizing. Common sizing is the practice of treating financial performance in terms of another factor such as company size or market share.

You can common-size a company sales figures, for example, by dividing components of those sales figures by the cost of good sold or buying that sales. As an example, I have a worksheet with information from two companies, just hypothetical companies of different si...

Introducing common-sizing strategies for analyzing financial statements
Video duration: 3m 59s 2h 18m Intermediate

Viewers:

Introducing common-sizing strategies for analyzing financial statements 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:
please wait ...