vertical analysis
Definition
Technique for identifying relationship between items in the same financial statement by expressing all amounts as the percentage of the total amount taken as 100. In a balance sheet, for example, cash and other assets are shown as a percentage of the total assets and, in an income statement, each expense is shown as a percentage of the sales revenue. Financial statements using this technique are called common size financial statements. See also horizontal analysis.
vertical analysis is in the Accounting & Auditing and Banking, Commerce & Finance subjects.
vertical analysis appears in the definitions of the following terms: horizontal analysis and common-size financial statement
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