Index & Common size Analysis - Financial Management Pertemuan 3

So before we started ! you need to know , what is Index  Analysis ?
So Index Analysis is An analysis of percentage financial statements where all balance sheet or income statement figures for a base year equal 100.0 (percent) and subsequent financial statement items are expressed as percentages of their values in the base year.

This is assets balance sheet :


Look in indexed column in 2006 and row cash, you can see the value as much as 67.6 . Where we get those numbers ? First you need to find the base years you can choose it freely. In this case we use 2005 as the base years.

And then use formula : (The value of the money in Years you want to indexed - Base year) :Base Year x 100%  

We use that also in the liabilities income statement , how to find index is the same like


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