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horizontal or trend analysis of financial statements horizontal or trend analysis of financial statements posted in financial statement analysis explanations 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 horizontal analysis of financial statement formula and the percentage analysis of increases and decreases in corresponding items in parative financial statements is called horizontal analysis horizontal analysis involves the putation of amount changes and percentage changes from the previous to the current year horizontal analysis — accountingtools horizontal analysis of the balance sheet horizontal analysis of the balance sheet is also usually in a two year format such as the one shown below with a variance showing the difference between the two years for each line item what is horizontal analysis definition meaning home accounting dictionary what is horizontal analysis definition horizontal analysis sometimes called trend analysis is the process of paring line items in parative financial statements or financial ratios across a number of years in an effort to track the history and progress of a pany’s performance excel horizontal analysis and vertical analysis horizontal analysis is a mon technique used to examine the changes in the line items of the in e statement and the balance sheet from year to year horizontal analysis for an in e statement ↑