What does it do?
A common size income statement is one that has an additional column showing each monetary amount as a percentage of the revenue (sales) of the business.
The common size income statement calculator allows for two income statements to be entered so that comparisons can be made. The use of the common size income statement as a comparison tool is discussed more fully in our common size income statement tutorial.
This common size income statement calculator works out the percentage each line item of the income statement is of total revenue. The calculation for each line item is given by:
Line item % = Line item value / Total revenue value x 100%
For example, if the income statement has total revenue of 108,249, and shows operating expenses of 8,701, then operating expenses are 8,701/108,249 = 8.0% of total revenue
The Excel common size income statement calculator, available for download below, is used to produce the common size income statement by entering details from the income statement of the business. The calculator is used as follows:
Enter the titles of the two income statements, this might be for the same business for different accounting periods, or for different businesses requiring comparison.
Enter the income statement information for each business. This information might be from management information, published regulatory documents, or from industry standards for comparison.
The common size income statement calculator totals the income statement information and then works out the percentage each line item is in relation to the total revenue of the business.
Common Size Income Statement Calculator Download
The common size income statement calculator spreadsheet is available for download in Excel format by following the link below.
The common size income statement calculator is one of many financial calculators used in bookkeeping and accounting, discover another at the links below.
Users use this common size income statement calculator at their own risk. We make no warranty or representation as to its accuracy and we are covered by the terms of our legal disclaimer, which you are deemed to have read. This is an example of an accounting tool that you might use when considering how to produce a common sized income statement. It is purely illustrative. This is not intended to reflect general standards or targets for any particular business, company or sector. If you do spot a mistake in this common size income statement excel calculator, please let us know and we will try to fix it.
About the Author
Chartered accountant Michael Brown is the founder and CEO of Double Entry Bookkeeping. He has worked as an accountant and consultant for more than 25 years in all types of industries. He has been the CFO or controller of both small and medium sized companies and has run small businesses of his own. He has been a manager and an auditor with Deloitte, a big 4 accountancy firm, and holds a BSc from Loughborough University.