Common Size Balance Sheet

“Vertical analysis” is another term for a typical size balance sheet. It is a format in which information is presented not only in the standard balance sheet format but also in a separate column that represents the identical information as a percentage of the total assets (for asset-line items), total liabilities (for liability-line items), or shareholder's equity (for equity-line items). So, a common size balance sheet represents assets, liabilities, and equity in both numerical values and relative percentages.