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.
Category: Accounting & Auditing
Previous: ← Horizontal analysis
More from this Section
- Equivalent units of production
Equivalent units of production measure the work done during the period, expressed in fully ... - Direct labor variance or total labor variance
The direct labor variance or total labor variance is the difference between the actual ... - Managerial accounting
Managerial accounting also called management accounting, is a field of accounting that ... - Ratio of net income to net sales
Ratio of net income to net sales is a statement of the net income a company earned from ... - Tax Rule
A tax rule, often referred to as the LIFO conformity rule, requires that if companies ...