horizontal analysis

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.
References in periodicals archive ?
BYTE will supplement these case studies with a horizontal analysis that identifies how positive externalities canbe amplified and negative externalities can be diminished.
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.
By combining vertical examination of roles, accountabilities and decision authorities with horizontal analysis of end-to-end business processes and bringing expertise from a variety of disciplines, MVC Associates offers a multi-dimension architecture of related services to its corporate customers.
Horizontal analysis, however, focuses on percentage changes and highlights the relative magnitude of an increase or decrease in sales, cash, net income, or any other financial statement item.
Horizontal analysis uses comparative financial statements for two or more successive periods and either a base-year-to-date or a year-to-year approach.
Exhibits 2,3, and 4 contain the horizontal analysis of the statement of cash flows of Automatic Data Processing, Inc.
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.
Consistent with the horizontal analysis this framework for organizing the overhead data flows from the actual to the flexible budget to the standard applied overhead costs of production.
This is in contrast to existing approaches that simplify the eye and BER picture with just the horizontal analysis or working from the complete data incompletely analyzed as is typically done with bit error rate test (BERT) and BERT-like solutions.
Among the more widely used methods are horizontal analysis, trend analysis, vertical analysis and ratio analysis.
Trend analysis takes horizontal analysis one step further, since it presents data for several successive years rather than only two.
After completing the Category Management DSS, Giant plans on developing a variety of other horizontal analysis applications.