Company management often analyzes financial statement data to understand how the business is performing relative to where it was historically, and relative to where it wants to go in the future.

Common-size financial statements present financial information in terms of percentages instead of dollar values. On a common-size statement, each line item is expressed as a percentage of a reference ...

Common size analysis can help you see how your company is performing year over year so you can identify trends. Many, or all, of the products featured on this page are from our advertising partners ...

A vertical analysis is used to show the relative sizes of the different accounts on a financial statement. For example, when a vertical analysis is done on an income statement, it will show the top ...

The balance sheet is a snapshot of the company's financial standing at an instant in time. The balance sheet shows the company's financial position, what it owns (assets) and what it owes (liabilities ...

A balance sheet is a type of financial statement that lists a company's assets, liabilities, and shareholders' equity. The assets should be in "balance" and equal the total liabilities and ...

In accounting, every financial transaction is recorded by two entries on the company's books. These two transactions are called a "debit" and a "credit," and together, they form the foundation of ...

A vertical analysis is used to show the relative sizes of the different accounts on a financial statement. For example, when a vertical analysis is done on an income statement, it will show the top ...