Quickbooks’ Common Size Income Statement

By Stephen L. Nelson

The Common Size Income Statement schedule lists, in income statement format, what percentage of the total sales revenue each income statement line item represents. When you compare these percentages with those of business peers, you can see the relative financial performance of your business. Trends in the percentages over the forecasting horizon can indicate improvement or deterioration in the financial performance of your business.


The Common Size Income Statement schedule has 13 rows of calculated data that express the component line-item amount for each period as a percentage of the sales revenue figure for the period. The formulas for all rows except Sales Revenue simply convert the Income Statement values to percentages.

The Sales Revenue figures add the Cost of Sales, Total Operating Expenses, Interest Income, Interest Expense, Income Tax Expenses (Savings), and Net Income (Loss) After Taxes percentages. The results always equal 100 percent.

The Sales Revenue percentage calculations add the expense and profit percentages. Those expenses shown as negative amounts, therefore, are subtracted.