# Common Size Balance Sheet Calculator

## What does it do?

A common size balance sheet is one that has an additional column showing each monetary amount as a percentage of the total assets of the business. Since from the accounting equation, total assets also equals total liabilities plus equity, the common size balance sheet also shows the percentage each line item has to total liabilities plus equity.

The common size balance sheet calculator allows for two balance sheets to be entered so that comparisons can be made. The use of the common size balance sheet as a comparison tool is discussed more fully in our common size balance sheet tutorial.

## Formula

This common size balance sheet calculator works out the percentage each line item of the balance sheet is to total assets. The calculation for each line item is given by:

`Line item % = Line item value / Total assets value x 100%`

For example, if a balance sheet has total assets of 25,278, and shows accounts receivable of 7,229, then accounts receivable is 7,229/25278 = 28.6% of total assets. ## Instructions

The Excel common size balance sheet calculator, available for download below, is used to produce the common size balance sheet by entering details relating to the balance sheet of the business. The calculator is used as follows:

### Step 1

Enter the titles of the two balance sheets, this might be for the same business for different accounting periods, or for different businesses requiring comparison.

### Step 2

Enter the balance sheet information for each business. This information might be from management information, published regulatory documents, or from industry standards for comparison.

### Step 3

The common size balance sheet calculator totals the balance sheet information and then works out the percentage each line item is in relation to the total assets of the business.