Monthly Archives: 11 сар 2024

Vertical analysis makes it much easier to compare the financial statements of one company with another and across industries. The above vertical analysis example shows the company's net profit where we can see the net profit in both amount and percentage. The income statement can be compared with previous years, and the net income can be compared where it helps to compare and understand the percentage of rising or loss of income. Vertical analysis can be used for non-financial data like sales figures or customer demographics. By analyzing these factors vertically, you can gain insights into the effectiveness of marketing strategies and identify areas where operational efficiency can be improved. Vertical analysis allows the comparison of financial statements by representing each line item on the statement as a percentage of…