In this format, every item, like cost of goods sold (COGS), operating expenses, and net profit, is expressed as a percentage of total revenue. For example, instead of just knowing that your gross profit is $10 million, you’ll see it represents, let’s say, 60% of your revenue. This makes it much easier to compare performance across years or even with competitors. If you’ve ever looked at a financial statement and felt like you were drowning in numbers, you’re not alone.