Skip to main content

Vertical Analysis

Vertical analysis is a technique for analyzing financial statements in which each line item is listed as a percentage of a base amount. Therefore, 1) line items on an income statement can be expressed as a percentage of gross sales, 2) while line items on a balance sheet can be expressed as a percentage of total assets or liabilities, 3) and vertical analysis of a cash flow statement displays each cash inflow or outflow as a percentage of the total cash inflows.


Popular posts from this blog

Could Oracle Become the Next Microsoft?

JPMorgan Chase Faces Investor Disappointment Despite Strong Q1 Performance

Netflix Crushes Subscriber Targets but Misses on Revenue Forecast