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

Return on total assets (ROTA) is a crucial financial metric utilized by investors and analysts to gauge the efficiency of a company in producing profits from its assets. It represents the proportion of net income earned relative to the total assets possessed by the company. A higher ROTA indicates that a company is efficiently deploying its assets … Read More