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horizontal or trend analysis of financial statements horizontal analysis also known as trend analysis is a financial statement analysis technique that shows changes in the amounts of corresponding financial statement items over a period of time it is a useful tool to evaluate the trend situations the statements for two or more periods are used in horizontal analysis horizontal analysis investopedia horizontal analysis is used in financial statement analysis to pare historical data such as ratios or line items over a number of accounting periods horizontal analysis can either use horizontal vs vertical analysis of financial statements the horizontal and vertical analysis approaches are similar in that the dollar amounts reported are converted to percentages however the approaches differ in the base used to pute the percentages scalability scalability is the capability of a system network or process to handle a growing amount of work or its potential to be enlarged to ac modate that growth for example a system is considered scalable if it is capable of increasing its total output under an increased load when resources typically hardware are added organizational analysis organizational analysis or more monly industrial analysis is the process of reviewing the development work environment personnel and operation of a business or another type of association this review is often performed in response to crisis but may also be carried out as part of a demonstration project in the process of taking a program to scale or in the course of regular operations