Vertical analysis

Vertical analysis, also called common-size analysis, is a technique that expresses each financial statement item as a percent of a base amount.

Vertical analysis shows the relative size of each category in the balance sheet. It also can show the percentage change in the individual asset, liability, and stockholders’ equity items.

Vertical analysis is used in both intra- and intercompany comparisons.

Share it:  Cite

More from this Section