What it is
Common-size analysis restates every line as a percent of a base: total assets on the balance sheet and net revenue on the income statement. That lets you compare periods of different size, or the entity with a peer group, on structure rather than on dollars. The change in each line’s share between periods shows shifts, such as cost of sales taking a larger part of revenue, that a dollar variance can hide.
The workbook carries a classified balance sheet and an income statement for two periods. Enter amounts in the yellow cells; subtotals, percentages, dollar and percent changes, the change in share and a balance check calculate. A benchmark column takes percentages from a source you can cite, and shows the difference between the entity’s share and the benchmark.
When to use it
- Analytical review at planning or completion, to see where the entity’s structure moved.
- Lender, investor or board packages that compare periods or peers on a percentage basis.
- Client advisory work where the owner asks why margins changed.
What’s inside
- Classified balance sheet, current and prior, each line as a percent of total assets
- Income statement, current and prior, each line as a percent of net revenue
- Dollar change, percent change and change in share (percentage points) for every line
- Optional benchmark percentage with the difference from the current share
- Balance check for both periods
Standard cited
This template follows Financial statement analysis (ASC 210, ASC 220 presentation). It is written in our own words, except for phrases the standard requires the document to contain, with [bracketed placeholders] for client details, amounts in USD and dates as MM/DD/YYYY. Check it against the current standard and your firm’s methodology before use.
Questions
What base should I use?
Total assets for the balance sheet and net revenue for the income statement are the usual bases, and the workbook uses them. Some analysts also express liabilities and equity against total liabilities and equity, which equals total assets, so the balance sheet percentages are the same.
Where do I get benchmark percentages?
From a source you can cite: a peer group, an industry data provider or the entity’s own budget. The workbook does not supply industry figures, and a comparison with the entity’s own prior period is often more informative.
How do I enter other income and expense?
Enter other income as a positive and other expense as a negative on the “other income (expense), net” line. Interest expense and income tax expense are entered as positive expenses and subtracted by the formulas.
Can I add lines?
Rename the captions to match the financial statements. To add a line, insert it between the first and last line of a section so the subtotal formula picks it up, and copy the percentage formulas into the new row.
Related templates
- Classified Balance Sheet Template (US GAAP)
- Financial Statement Shell: Balance Sheet, Income, Equity and Cash Flows
- Financial Ratio Analysis Workbook
- Flux Analysis Template (AU-C 520)
Last updated 11/05/2026. All free templates.