Accountancy Forum

AOA,

can anybody tell me about horizontal and vertical analysis and how they determined?

Walaikum Assalam

Yaar simple hai, google main search maro )

Waise, simplye saying horizongal analysis is the analysis of same figure over a period of time e.g. comparison of current sales with previous sales. Vertical sales are comparison of two figures with reference to a defined relationship e.g. cost of sales to revenue. Baqi proper definition etc. google kar lena

vertical analysis is camparision of various figure appearing in vertical ordeer as cost of sales to sales and gross profit to sales abnd cogs however horizontal analysis is camparision of figures apperaing in same head eg sales in the corresponding year!!!!<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by bilal hanif</i>
<br />AOA,

can anybody tell me about horizontal and vertical analysis and how they determined?
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Horizontal analysis is an analysis performed by calculating the ratios and comparing them with the previous years Like GP% in this year and the last year signifies the horizontal analysis Whereas vertical analysis is performed on the ratios calculated with respect to a particular head of account.Mostly we take sales in P&L and assets in Balance sheet for vertical analysis.cogs to sales , Admin exp to sales are an example of vertical analysis.

Hope the answer of the question