1000 514 486 345 141 57 198 74 124 for example

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Unformatted text preview: 100.0 51.4 48.6 34.5 14.1 5.7 19.8 7.4 12.4 For example, financial statement users could use vertical analysis to compare IBM with the much smaller Apple Computer. Financial Statement Analysis – Module 1 Financial Statement Analysis – Module 1 Vertical analysis enables a comparison of companies of different sizes. Regardless of the specific technique used, the essential point is that accounting numbers are virtually meaningless in isolation. Their value derives from comparison with other numbers. For example, a baseball player gets 45 hits. Does this indicate a satisfactory performance by the player? It depends on the number of at-bats. Although Chicago Cereal s net sales are less than those of General Mills, vertical analysis eliminates the impact of this size difference for our analysis. Fi...
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This note was uploaded on 01/19/2014 for the course ACCTMIS 2200 taught by Professor Smith during the Spring '12 term at Ohio State.

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