Common sized financial statements


Please also do some research using the resources located in the UoL library. Here are the questions:

  • What are 'segment reports' and how are they used?
  • What are common sized financial statements and how are they used?
  • What are the six general categories of financial ratios and how can they help to measure divisional performance?
  • With the advances we've seen in technology over the last decade, combined with the increasing trend towards e-commerce, do you think the traditional metricswhich are typically used to measure divisional performance have become obsolete? Why or why not? Are there any better or more effective alternatives?

Please respond as concisely as possible to each question. Credit will be given for the integration of academic theory together with the use of empirical evidence and/or the use of well researched, relevant practical examples.

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Finance Basics: Common sized financial statements
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