Had this practice question and I am not sure how this answer makes sense to me. My choice was B:
Which of the following is an analyst least likely to be able to find on or calculate from either a common-size income statement or a common-size balance sheet?
A) Inventory turnover.
B) Operating profit margin.
C) Debt to equity ratio.
The correct answer according to the key was A.
Any help is appreciated.
well, I guess you may have to just memorise it…
Common-size Income Statement is expressing each line item as a percentage of revenue or total cash flows.
Common-size BS is expressing as a percentage of total asset.
B and C are giving some percentages of above two while A is not…
I hope that helped!
Wow, reading it like the actual math you just typed out and saying “% of TA”. I simply just didn’t put the two together when I read it. I should probably slow down.