Your SlideShare is downloading. ×
"Common Size Analysis" in Minneapolis 2011
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

"Common Size Analysis" in Minneapolis 2011

771

Published on

Jimmy Gentry presents "Common Size Analysis" in Minneapolis on Oct. 4, 2011 at the Star Tribune during the Reynolds Center's free workshop, "Business Journalism Boot Camp." …

Jimmy Gentry presents "Common Size Analysis" in Minneapolis on Oct. 4, 2011 at the Star Tribune during the Reynolds Center's free workshop, "Business Journalism Boot Camp."

For more information about training for business journalists, please visit businessjournalism.org.

Published in: Career, Education, Technology
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
771
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
5
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Business Journalism Boot Camp
            • Common Size Analysis
            • Oct. 4 , 2011
  • 2.
    • Donald W. Reynolds National Center
    • For Business Journalism
    • At Arizona State University
    Common Size Analysis
  • 3.
    • James K. Gentry, Ph.D.
    • Clyde M. Reed Teaching Professor
    • School of Journalism and Mass Communications
    • University of Kansas
    • [email_address]
    Common Size Analysis
  • 4. Common Size Analysis
    • A technique that turns all financial statement entries into percentage of revenue
    • Then can look at percentage change and percentage point change
    Common Size Analysis
  • 5. Why Common Size
    • Identify trends
    • Identify what causes changes in totals on financial statements
    • Easier to compare percentages than raw numbers
    • Easier to compare companies
    • Easier to compare company with industry averages
    Common Size Analysis
  • 6. Doing Common Size
    • For IS, divide Revenue into all entries.
    • For BS, divide each total category into its category items. For example, divide Total Assets into each category of assets.
    • For CF, divide each total category into its category items.
    Common Size Analysis
  • 7. Comparable Statements
    • Often have to restructure Income Statement to the In-the-Box format we studied
    • Typical problems come from items we would consider Other Income/Expenses
    Common Size Analysis
  • 8. Trends in Margins
    • How have Cost of Goods Sold and Sales, General & Administrative changed?
    • What does that mean for Gross Profit and Operating Profit?
    • How does Net Profit Margin move?
    • Value of using Basis Points
    Common Size Analysis
  • 9. Common Size, Ratios
    • These techniques let you drill below the surface and start developing a more complete picture of the company ’s performance
      • Strengths
      • Weaknesses
      • Strategic effectiveness of the firm
    Common Size Analysis

×