vertical analysis

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.

Vertical Analysis

On a balance sheet, a means of calculating assets, liabilities, and equities in which each intake or outlay is represented as a percentage of each group. For example, suppose a company has three liabilities: a debt to the bank, a bond issue, and salaries to employees. Vertical analysis would record each of these on a balance sheet as a percentage of the total amount the company carries in liabilities.

vertical analysis

The comparison of an item on a financial statement with a different item on the same statement. For example, an analyst may study a firm's balance sheet to compare the level of current assets with the level of current liabilities in order to measure liquidity. Analysts often study a firm's income statement to compare net income with total sales. Compare horizontal analysis.
References in periodicals archive ?
Detailed global market trend analyses- including market drivers, market restraints, technology trends, vertical analysis, and pricing analysis- are provided in this research.
The report provides vertical analysis of the market, enabling readers to compare IT expenditures in the Polish telecoms, utilities, finance, trade and production, with an eye toward upcoming expansions and enhancements expected to take place in the next few years.
It is divided into two parts: first quadri-analysis of government budget in terms of reviewing the effectiveness of government programs and review efficiency, economy and fairness review and the second is the financial analysis of governmental budget in terms of horizontal, vertical analysis and ratio analysis.
b) Vertical analysis is a technique for analyzing the relationships between the items on an income statement, balance sheet or statement of cash flow by expressing components as percentages.
Title: European IP VPN Services Market - Vertical Analysis
Horizontal and vertical analysis is frequently used to analyze income statements and balance sheets, but is not used to analyze the statement of cash flows.
Detailed global market trend analyses-including market drivers, market restraints, technology trends, vertical analysis, and pricing analysis-are provided in this research.
Among the more widely used methods are horizontal analysis, trend analysis, vertical analysis and ratio analysis.
Detailed world market trend analysis market drivers, market restraints, technology trends, vertical analysis, and pricing analysisare provided in this research.
Detailed global market trend analysis, including market drivers, market restraints, technology trends, vertical analysis, and pricing analysis are provided in this research.
The vertical analysis revealed that in 2011, the maximum demand for the RFID came from the transportation sector, while retail emerged as the fastest growing vertical.
The research also provides forecasts for global and regional revenues as well as a vertical analysis and competitive landscape.