For example we can compare sales in 2008 and 2009

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Unformatted text preview: . For example, we can compare sales in 2008 and 2009, then compare sales in 2009 and 2010, and finally compare sales in 2010 and 2011. 2011 $41,500 2010 $37,850 18.6% Sales 8.1% 2009 2008 $36,300 $35,000 3.7% Base year For example, the sales for 2011 represent an increase of 18.6% over the base year 2008. Sales 2011 2010 2009 2008 $41,500 $37,850 $36,300 $35,000 9.6% 4.3% 3.7% over 2010 over 2009 over 2008 (36,300 – 35,000) ÷ 35,000 = 3.7% Financial Statement Analysis (FSA) – Module 1 Pg 1 Financial Statement Analysis – Module 1 Financial Statement Analysis – Module 1 Vertical analysis is a technique that involves expressing each item in the financial statements as a percentage of a base amount within the same year. Helpful Hint: In a horizontal analysis, while the amount column is additive (the total is $683 million), the percentage column is not additive (6.4...
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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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