Common Size Comparative Income Statement Essay

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Common-Size Comparative Income Statement for Sime Darby Group
The purpose of the common size income statement is an income statement that in each account to express the percentage of the value of sales for each year in the company. This financial statement is to do analyse the time periods of a company in an easy way. The common size income statement will provide a summary of the percentage growth of a company’s revenues and expenses. This method will determine how much of the expenses are changing as a percentage of revenue, which will be a simple way to observe and to do analysis for the company. Figure 1: Common-Size Income Statement for Sime Darby Group.

Based on the analysis shown above, there will have five years of percentage changes of Sime Darby Group in Malaysia. In year of 2013, the operating expenses from year 2012 has increase from -90.58% to -93.33%. Then, the other operating income increase from 2.79% in 2012 to 3.24% in 2013. Share of results of jointly controlled entities has increased 0.03% from 2012 to 2013, while the share of results of associates has increased 0.04% from 2012 to 2013. Besides, finance income has dropped from 0.38% in 2012 to 0.27% in 2013. Meanwhile, the finance cost has arisen from -0.81% in year of 2012 to
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It is calculating by using net income divide by average shareholders’ equity. Besides that, a company with high return on common equity is determining that the company is successful in generating the cash or profits. From year 2012, the return on common equity ratio for the company is increasing until 2013, but there is slightly decreased from year 2013 to year 2015. At last, the return on common equity ratio has increased 0.06636 ratio compared in year 2015. As the result shown in year 2016, the company is successfully in generating more profit throughout this five years. The higher the ratio, the better the

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