To accurately evaluate the financial health of a company over time or relative its industry peers, analysts frequently turn to common size income statements. These statements express each line item as a percentage of total revenue, enabling a more meaningful analysis across companies of varying sizes and industries. By identifying trends in key fin… Read More

Return on total assets (ROTA) is a crucial financial metric employed by investors and analysts to gauge the efficiency of a company in creating profits from its assets. It represents the ratio of net income earned relative to the total assets owned by the company. A higher ROTA indicates that a company is effectively utilizing its assets to generat… Read More