Comparison of common-size financials (Learning Objective 3)
Select a company and obtain its financial statements. Convert the income statement and the balance sheet to common size and compare the company you selected to the industry average. The Risk Management Association’s Annual Statement Studies, Dun & Bradstreet’s Industry Norms & Key Business Ratios, and Prentice Hall’s Almanac of Business and Industrial Financial Ratios by Leo Troy publish common-size statements for most industries.