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A horizontal analysis, or trend analysis, is a technique analyst use to compares ratios or line items in a company's financial statements over a certain period of time. Horizontal analysis
Horizontal analysis let shareholders and experts reveal how a company has done over time. Additionally, shareholders and experts can use horizontal analysis to evaluate a company's growth rates in relation to its organizations. An example of this is a company revenues increased by 10% this past quarter, this indicate the usage of horizontal analysis. This technique is useful in any element in a company's financials from revenues to earnings per share (EPS) and is useful when comparing the performance of various companies.
Horizontal analysis is a technique used to measures the change in the performance of the business in relation to any base... View the full answer