vertical analysis

vertical analysis
The use of one item in *financial statements as a base amount for comparative purposes. For example, if the value of *gross sales in an *income statement is set at 100 percent, the various expenses within the income statement can be expressed as a percentage of gross sales. Compare *horizontal analysis.

Auditor's dictionary. 2014.

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  • Vertical analysis — The process of dividing each expense item in the income statement of a given year by net sales to identify expense items that rise faster or slower than a change in sales. The New York Times Financial Glossary * * * vertical analysis UK US noun… …   Financial and business terms

  • vertical analysis — Dividing each expense item in the income statement of a given year by net sales to identify expense items that rise more quickly or more slowly than a change in sales. Bloomberg Financial Dictionary * * * vertical analysis UK US noun [C or U]… …   Financial and business terms

  • Vertical Analysis — A method of financial statement analysis in which each entry for each of the three major categories of accounts (assets, liabilities and equities) in a balance sheet is represented as a proportion of the total account. The main advantages of… …   Investment dictionary

  • analysis — /euh nal euh sis/, n., pl. analyses / seez /. 1. the separating of any material or abstract entity into its constituent elements (opposed to synthesis). 2. this process as a method of studying the nature of something or of determining its… …   Universalium

  • Horizontal analysis — The process of dividing each expense item of a given year by the same expense item in the base year. This allows for the exploration of changes in the relative importance of expense items over time and the behavior of expense items as sales… …   Financial and business terms

  • horizontal analysis — The process of dividing each expense item of a given year by the same expense item in the base year. It allows assessment of changes in the relative importance of expense items over time and the behavior of expense items as sales change.… …   Financial and business terms

  • Financial Statement Analysis — The process of reviewing and evaluating a company’s financial statements (such as the balance sheet or profit and loss statement), thereby gaining an understanding of the financial health of the company and enabling more effective decision… …   Investment dictionary

  • horizontal analysis — The analysis of *financial statements over time. The technique typically looks at percentage changes in the amounts of specific items between *financial reporting periods. The reasonableness of changes over time is a common aspect of auditors’… …   Auditor's dictionary

  • Recurrence quantification analysis — (RQA) is a method of nonlinear data analysis (cf. chaos theory) for the investigation of dynamical systems. It quantifies the number and duration of recurrences of a dynamical system presented by its phase space trajectory.BackgroundThe… …   Wikipedia

  • Sieve analysis — A sieve analysis is a practice or procedure used to assess the particle size distribution of a granular material. The size distribution is often of critical importance to the way the material performs in use. A sieve analysis can be performed on… …   Wikipedia

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