Common size financial statements
Randy Josleyn
Quick question about the financial statement commands. I combined the income statement command with the -% option, and was surprised that income and expense section percentages are calculated separately instead of as percentage of total income. Is this behavior possible with some other option?
Simon Michael
On Mar 30, 2021, at 03:13, Randy Josleyn <randy....@gmail.com> wrote:
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Simon Michael
On Mar 30, 2021, at 06:22, Simon Michael <si...@joyful.com> wrote:
Randy Josleyn
Hi Michael,
And thanks for mentioning https://www.investopedia.com/terms/c/commonsizefinancialstatement.asp.As I read it, always showing the percentage of the grand total wouldn't be right either ?
Yes I think that’s correct. Each financial statement would be based on a different number:
| Income statement | Cash flow statement | Balance sheet | |
|---|---|---|---|
| Item as a % of: | Total income | Total positive cash flows | total assets |
This is from the personal finance textbook I referenced earlier. But like you said, according to the link you referenced, there are different versions of the common-size cash flow statement. The section on common-size income statements also mentions that “common size” is used most often in reference to common-size income statements, but that the other financial statements can be analyzed in this way, too.
Is there any other way to get the percentages in terms of total income? Of course I could always just export it to csv and do the math in excel, instead — I just like things automated! However, I'm not sure I'd suggest making any changes to code if it's not directly possible, either. Some people might like the current behavior, and it's not so hard to just export the data and do the analysis myself.
The textbook section I referenced: https://saylordotorg.github.io/text_personal-finance/s07-02-comparing-and-analyzing-financ.html
On Mar 30, 2021, at 06:22, Simon Michael <si...@joyful.com> wrote:Hi Randy,it might be possible by using hledger balance income expenses -% ?
Thanks for your suggestion! It does give info a little differently than incomestatement.
I checked it out, but the percentage is calculated in relation to the total (which is the net income, not total income with this command).
For example, the command hledger -f test.ledger bal income expenses -%, with this input:
03/31 employer
assets:bank account $500.00
income:job
04/01 shop
expenses:food $30.00
assets:bank account
04/01 gas station
expenses:gas $20.00
assets:bank accountI get the following:
6.7 % expenses:food
4.4 % expenses:gas
-111.1 % income:job
--------------------
-100.0 %It shows me expenses are 11.1% of my income, but wasn’t immediately apparent to me. With --tree, it’s easy to see in this example, but with my own data, income shows up as -990% and expenses as 890%, and I don’t really know what to make of that, other than that my expenses and income are not far enough apart from each other, haha!
--On Mar 30, 2021, at 03:13, Randy Josleyn <randy....@gmail.com> wrote:Hi list members,
Quick question about the financial statement commands. I combined the income statement command with the -% option, and was surprised that income and expense section percentages are calculated separately instead of as percentage of total income. Is this behavior possible with some other option?Sorry if this has been discussed before. I searched for "common size" on Groups and didn't find any results.In case anyone is interested, BTW, I'm learning about personal finance through one of University of Minnesota's open textbooks on the subject, and encountered this concept.Thanks!Randy--
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