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Why is used in each of the 1 - analysis of trends 2 - 3 horizontal analysis - analysis of the vertical?

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Question added by Deleted user
Date Posted: 2014/09/17

Hello, 

 

The trend analysis (usually called "horizontal analysis") represents the comparison of the same item (financial indicator) over a certain period.

For example the evolution of "Turnover" at31.Dec.2013 vs31.Dec.2012.

 

The vertical analysis on the other hand shows each amount from the financial statements as a percentage of another item.

For example: you want to see how much percentage is "Net Profit" from "Turnover"  and this is called "Profit margin"

 

I hope my explanation was fine for you. If necessary I can go deep in details.

 

Thank you,

Valentin

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