[Verse 1]
When you've got financial statements from different companies
Different sizes make it hard to see what's really happening
Amazon's millions versus smaller firms with thousands
How do you compare when numbers are so different?
[Chorus]
Common-size analysis, break it down to percentages
Vertical shows the parts, horizontal shows the changes
Every line becomes a piece of one hundred percent
Now you can compare and see where money's really spent
Common-size, standardize, make the numbers talk
Common-size, analyze, now your data walks the walk
[Verse 2]
Vertical analysis takes each line item on the sheet
Divides by total revenue or assets, makes it neat
If cost of goods is forty percent of sales today
You'll see it clearly marked in this percentage way
[Chorus]
Common-size analysis, break it down to percentages
Vertical shows the parts, horizontal shows the changes
Every line becomes a piece of one hundred percent
Now you can compare and see where money's really spent
Common-size, standardize, make the numbers talk
Common-size, analyze, now your data walks the walk
[Verse 3]
Horizontal analysis looks across the years
Takes the base year as one hundred, makes trends crystal clear
If revenue grew from ten million to fifteen
That's fifty percent growth, now the pattern can be seen
[Bridge]
No more guessing which company's performing best
Percentages reveal what raw numbers never expressed
Industry benchmarks become easy to compare
When everything's standardized, insights are everywhere
[Chorus]
Common-size analysis, break it down to percentages
Vertical shows the parts, horizontal shows the changes
Every line becomes a piece of one hundred percent
Now you can compare and see where money's really spent
Common-size, standardize, make the numbers talk
Common-size, analyze, now your data walks the walk
[Outro]
From balance sheet to income statement too
Common-size analysis works for you
Turn those numbers into percentages
Make financial comparison advantages