Common-size analysis is the restatement of financial statement items using a common
denominator or reference item that allows us to identify trends and major differences.The analyst can then compare these proportions across time and across the company's
industry:
  Comparing the same company in different years allows us to focus on changes in the
composition of accounts or expenses over time.  Comparison with competitors' vertical common-size statements for the same year allows us
to examine differences in the makeup of accounts for similar companies.  For the balance sheet, the benchmark is total assets.