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I have the five ratios to conduct ratio analysis. I just nee

I have the five ratios to conduct ratio analysis. I just need help to figure out whether to use common size income statements or regular income statements. And how to figure whether to use income statements for the analysis or the balance sheet. Balance sheet or trial balance.

The five ratios I will be using are:

current ratio
gross profit margin
Operating margin/ROS
Debt to equity
Inventory turnover

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I just need help trying to figure out whether to use common size income statements or regular size income statements.

- The common-size income statement and balance sheet are used for vertical and horizontal analysis, also called trend analysis. The regular income statement and ...

Solution Summary

I have the five ratios to conduct ratio analysis. I just need help to figure out whether to use common size income statements or regular income statements. And how to figure whether to use income statements for the analysis or the balance sheet. Balance sheet or trial balance.

The five ratios I will be using are:

current ratio
gross profit margin
Operating margin/ROS
Debt to equity
Inventory turnover

$2.19