Common-Size Percentages Common-size percentages, used in analyzing the balance sheet and also the income statement, are a calculation that sets each line item as a percent of one standard amount.

Common-Size Balance Sheets Like the income statement, a common-size balance sheet compares all financial items to a reference item.

Calculating an interest rate To calculate an interest rate, you'll need a few pieces of information: The interest expense, which you can find on a company's income statement.

The calculation and common uses To calculate operating income return on investment, divide the company's operating income by its total operating assets, which you can find on its balance sheet.

Understand net income: its definition, calculation method, and its critical role in business decisions and tax reporting. Learn how to assess company profitability effectively.