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How to explainCommon size:CFS?

幫考網(wǎng)校2020-10-13 14:17:07
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Common size in financial statements is a technique used to analyze and compare financial statements by expressing each line item as a percentage of a common base item. In the case of the cash flow statement (CFS), common size analysis involves expressing each cash flow category as a percentage of the total cash flows from operating activities. This allows investors and analysts to easily identify trends and changes in a company's cash flow over time and compare it to industry benchmarks. Common size analysis can also help identify areas where a company may be over or underperforming relative to its peers.
幫考網(wǎng)校
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