A common size balance sheet is a type of standardized financial statement that completely lists all of a firms specific assets, liabilities, and equity claims as a percentage of a firms total assets.
The common size ratio for each line on the financial statement is calculated as follows:
Common Size Balance Sheet Ratio:
Common Size Ratio = Item of Interest/ Reference Item
Common Size Ratio for Bonds Outstanding = Amount of Bonds/ Total Assets
These ratios are useful when conducting a cross- sectional analysis between different companies in the same industry.
Additional Accounting Balance Sheet Example Problems:
Accounting Balance Sheet Example
Accumulated Depreciation Balance Sheet
Balance Sheet Questions
Financial Statements
Complete Accounting Tutorial
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