Here are some terms to look for: Many investors use two methods to analyze income statements: horizontal analysis and vertical analysis. Horizontal analysis essentially involves looking at figures ...

Financial accounting calls for all companies to create a balance sheet, income statement, and cash flow statement, which form the basis for financial statement analysis. Horizontal, vertical ...

By doing the same analysis for each item on the balance sheet and income statement, one can see how each item has changed in relation to the other items. Horizontal analysis, also known as trend ...

All three of the primary financial statements — the income statement (or profit ... There are two different types of common size analysis: vertical and horizontal. The formula below is the ...