vertical analysis definition

vertical analysis

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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