Vertical Analysis - Meaning, Formula, Calculation & Interpretations

In this tutorial, we will learn what is Vertical Analysis, its formulas and step-by-step calculations. Following that, we will perform vertical analysis of the Colgate Case Study and interpret the results.

Download the Colgate Excel Model Ratio Analysis Template - This template will be used for the analysis. You can download the ratio analysis template from this link - https://www.wallstreetmojo.com/ratio-...

What is Vertical Analysis?
--------------------------------------------
Vertical analysis is a financial statement analysis technique in which each item in the financial statement is represented as a percentage of the base figure.

Formula
--------------------------------------------
Vertical Analysis formula = Individual Item / Base Amount *100

Advantages of Performing Vertical Analysis
--------------------------------------------
• Vertical analysis is one of the most simple and direct methods of financial analysis.
• It yields a comparable percentage that can be compared to previous year’s percentages of the same organization.
• Because the comparison is made in percentages, it also helps to compare the financial statements of various organizations.

To know more about Vertical Analysis in Finance, you can go to this link:
https://www.wallstreetmojo.com/vertic...

Connect with us!
Youtube ►    / @wallstreetmojo  
LinkedIn ►   / mycompany  
Facebook ►   / wallstreetmojo  
Instagram ►   / wallstreetmojoofficial  
Twitter ►   / wallstreetmojo