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Horizontal Analysis

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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.

Horizontal Analysis
In fundamental analysis, the comparison of a financial ratio or some other benchmark to the same ratio or benchmark for a different period of time. For example, horizontal analysis may investigate whether a company's earnings have gone up or down over a given quarter or year. Horizontal analysis may be used in making investment decisions to determine a company's financial health. In general, a horizontal analyst chooses a timeframe to match the timeframe of a possible investment.

horizontal analysis
Comparison of financial statements or specific items in a financial statement that covers two or more periods. Compare vertical analysis.


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The company also introduced the multi X 2500, which uses double furnace technology and features a tilting furnace that combines the advantages of both vertical and horizontal analysis on a single-analysis system.
HORIZONTAL ANALYSIS Period-to-period, the absolute dollar difference in an account balance may not adequately portray the effect of a change.
The author specifically addresses three auditing techniques--ratio analysis, horizontal analysis, and vertical analysis--that investigators can use to systemically analyze financial statements for investigative leads.
 
 
 
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