The Common Size Analysis of financial statements convert the financial statement items into percentage which makes the analysis of the financial statement easier and the financial statements can be compared easily with the main competitors in the industry. The common size analysis provides brief overview regarding the assets and liabilities of the business. In the Appendix 3 the common size balance sheet and income statement of the Mobil is presented. The common size balance sheet of Mobily Corporation shows increase in the current assets of the corporation. The corporation current assets were 19.8% in the year 2015 in 2007 the current assets were 15.7% which shows a significant increase over the years. The total Equity of the corporation has shown fluctuation over the years. In 2015 the total equity was 36.7%. The long term liabilities of the firm stood at 20.4% in 2015 (Robinson, et al. 2015).

            If the common size Balance sheet of Mobily is compared with the largest Telecom company of Saudi Atrabia STC than significant amount of differences can be observed. The cuurent Assets of STC are higher than Mobily Corporation. STC’s Current Assets in 2015 were 38.3%. The long Term liabilities of STC are lower than Mobily Corporation and were 12.4% in 2015. The equity of the STC Corporation is way higher than the Equity of Mobily. It means that in terms of liquidity and financial leverage STC financial performance is better than Mobily.

        When the Common Size Balance Sheet of Mobily is compare with Zain Co. it can be seen that the current assets of Zain are lower than the Mobily Corporation. The Long term debt of the corporation has increased over the years more than Mobily’s long term debt. It means that Zain is more financially leveraged (Erickson 2014).

Income Statement

        The common size income statement of Mobily indicating decling trend in the net income of Mobily. Mobily in the previous years were generating profit which decline significantly in 2014 and experience recobery inn 2017 (Fridson and Alvarez 2011).

        If Net Income of STC is compared with Mobily than it can be seen that STC has not experienced major decline in profitability as Mobily does. The net income of STC shows consistency over the years.

Over the years Zain Co unable to generate significant amount of profit. The corporation has reach breakeven in 2017. It can be seen that Mobily profitability condtion is better than Mobily up to lot of Extent (Robinson, et al. 2015).

References of Analysis & Comparison of Applied Finance

Erickson, K.H. 2014. Financial Risk Management: A Simple Introduction. K.H. Erickson.

Fridson, Martin S., and Fernando Alvarez. 2011. Financial Statement Analysis: A Practitioner's Guide. John Wiley & Sons.

Robinson, Thomas R., Elaine Henry, Wendy L. Pirie, Michael A. Broihahn, and Anthony T. Cope. 2015. International Financial Statement Analysis, Third Edition (CFA Institute Investment Series) . 3. John Wiley & Sons.