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Investments glossary

Common Size Income Statement


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All that is gold does not glitter not all those that wander are lost.

— J. R. R. Tolkien

A common size income statement is an income statement in which each line item is expressed as a percentage of the value of revenue or sales. It is used for vertical analysis, in which each line item in a financial statement is represented as a percentage of a base figure within the statement.

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