3 Horizontal Analysis Of Income Statement
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download profit & loss statement in e statement in e statement horizontal analysis is the technique of evaluating financial statements analysis to know the changes in the amounts of corresponding items over a period 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 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 what is the difference between vertical analysis and what is the difference between vertical analysis and horizontal analysis vertical analysis reports each amount on a financial statement as a percentage of another item for example the vertical analysis of the balance sheet means every amount on the balance sheet is restated to be a percentage of total assets if inventory is $100 000 and total assets are $400 000 then inventory is presented 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
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