To efficiently 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 evaluation across companies of different sizes and industries. By identifying trends in key… Read More

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