Indicates the proportion
of an asset/liability/expense as a function of total assets/liabilities/revenue.
Things to remember
Compares what proportion that
an expense reduces sales, especially useful when comparing
previous years.
It is also useful when comparing
similar companies of different sizes to see if they
have the same financial structure.
[Click
on the buttons above to see the financial statements]
For Cory's Tequila Co.
1999
1998
Sales
100%
100%
COGS
35%
34%
Other
Expenses
40%
41%
Net
Income
17%
16%
Common Size Analysis:
Looking at the chart above you wouldn't really think that there
is anything that useful to compare. That is because Cory's Tequila Co. has done an excellent job maintaining its pricing and expenditure
strategy. Ideally you would like to see Cost
of Goods Sold (COGS) go down each year because of increased
efficiencies. It also tells us that every $1 of sales contributes
17 cents to the bottom
line of Cory's Tequila Co. - a healthy profit margin.
Disnat is a division of Desjardins Securities. Desjardins Securities is a member of the Investment Industry Regulatory
Organization of Canada (IIROC)
and a member of the Canadian Investor Protection Fund.
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