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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

horizontal analysis

Comparison of financial statements or specific items in a financial statement that covers two or more periods. Compare vertical analysis.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
We call this "horizontal analysis." The method compared the average value of each metric in 2007, 2009 and 2018 to see if companies did better or worse in each year.
It describes the different phases of a research process and different epistemological stances in qualitative inquiry, designing a research project, choosing an approach to guide methodological decisions, choosing tools for fieldwork, ethical challenges, preparing for analysis and validity requirements, the stages of vertical and horizontal analysis, and theorizing and presenting results, with examples of real research in action.
Two kinds of analysis were performed: a horizontal analysis, where the performance of each PV string was compared with other strings and with the target, over one year of observation, and a vertical analysis, where the performance of each string is compared with itself over four years of observation.
A horizontal analysis can be conducted on net income compared to assets over several years and used to determine if growth in the figure is typical for the industry or looks out of the ordinary.
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.
"We are going to carry out a horizontal analysis of the reform process," explained Slovenia's Ambassador in Brussels, Igor Sen ar.
Learning Objective 1 * To define "comparative financial statements" and conduct a horizontal analysis and trend analysis.
It will be a question of proceeding with a horizontal analysis of the process to reform the treaties and considering a dozen elements which will have to be implemented.
The text defines five types of analytical procedures (horizontal analysis, vertical analysis, variance analysis, ratio analysis, and comparison with other operating information), but fails to provide detailed examples of how to use each of these techniques.
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.
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.