Vertical analysis
Vertical analysis is comparing items in a financial report by expressing each item as a percentage of a certain base total.
Definitions
According to College Accounting: A Practical Approach by Slater (13th edition),
- Vertical analysis. Comparing items in a financial report by expressing each item as a percentage of a certain base total.
According to Managerial Accounting by Braun, Tietz (5th edition),
- Vertical analysis. Analysis of a financial statement that reveals the relationship of each statement item to a specified base, which is the 100% figure.
Related concepts
- Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.
