horizontal analysis

  

Definition

Comparative study of a balance sheet or income statement for two or more accounting periods, to compute both total and relative variances for each line item. See also vertical analysis.

Use horizontal analysis in a sentence

  • Our horizontal analysis was in and we knew that we had to get things moving quickly if we were to get back on track.

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  • If you find yourself not being able to figure out what the horizontal analysis suggests you may want to get a second opinion.

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  • Before beginning her analysis, the auditor requested a horizontal analysis of the company's holdings, to properly assess the company's financial activity during the time period she had been called in to review.

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