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a common size income statement expresses each item on the income statement as a percentage of sales or total revenue this allows you to analyze changes in a companys cost structure over time for example we can see that amazons g a expense was consistently around 1.9 percent of net sales from 2018 to 2021. this means that 1.9 cents of every sales dollar went to g a expense now the common size income statement also shows you a companys margins how much of every sales dollar became profit in 2021 every dollar of net sales for amazon generated 5.3 cents of operating income the common size income statement is also helpful in spotting docHub fluctuations in a companys income statement items over time with amazon we see that non-operating revenue is typically a very small percentage of amazons total net sales but in 2021 it jumped to 3.1 percent this is because amazon recognized an 11.8 billion dollar gain on its investment in rivian when the company went public but a common size i
