COMMON SIZE INCOME STATEMENT ANALYSIS

Over the past two accounting year 2017-18 & 2018-19, the revenue from operations has remained
more or less constant and there is no significant change.If we look at the common size income
statement where revenue is taken as 100% and other items are expressed in as a percentage of
revenue.The percentage of expenses over revenue has remained more or less same in both the
years(91.24% and 91.00%).the cost of material over revenue has seen a significant increase from
61.49% in 2017-18 to 71.57% in2018-19 but there is a fall down in inventories of finished goods
which was 4.75% in 2017-18 to (-3.29)%.