Common Size Balance Sheet
a common size balance sheet is a valuable tool for tracking and analyzing the changes and performance of a business over multiple time periods. the common size balance sheet not only displays the numeric value of all entries it also shows the percentage of each entry relative to the total value of related entries. these entries are grouped under assets such as cash and deferred income taxes, liabilities such as accounts payable, accrued expenses and debts and stockholder equity such as preferred and common stock and retained earnings. on a common size balance sheet, an asset is compared to the company's total assets, a liability to its total liabilities and stockholder equity to total stockholder equity. common size balance sheets can also be used to compare companies as part of an industry analysis or as research into a potential business acquisition. for example, ?, ceo of murphy motors is trying to decide if his company should acquire mo cars, a growing luxury car brand. ? compares mo cars' most recent common size balance sheet to its one from the same period the year prior. if mo cars' total assets are $6,800,000 and it has $1,000,000 in cash, then the amount of cash that the company has on hand is about 15% of its total assets. in 2012, however, mo cars' total assets were $5,000,000 but it had $2,000,000 in cash representing 40% of its total assets. ? finds it peculiar that the company had to spend so much of its cash to expand ? to see mo cars' credit. ? learns that mo cars' credit isn't very good meaning that the company's growth isn't sustainable without cash. for this reason, ? decides that murphy motors will not acquire mo cars.
- common size balance sheet・・・比率表示貸借対照表
- deferred income tax・・・繰延税金
- accrued expense・・・未払費用