Common Size Analysis is actually the vertical analysis but for more than one reporting periods. As it covers more than one accounting period, it is of high importance for the financial analyst because he or she can easily see the…
Vertical analysis is a way of expressing the figures of financial statements in proportion to a total amount such that the total of each individual portion/item comes to 1 or 100{1bb28fb76c3d282be6cfd0391ccf1d9529baae691cd895e2d45215811b51644c}. This type of analysis can be done for balance…
Horizontal analysis can be conducted when the information is available for at least two years. This analysis is also called Trend analysis. This is quite helpful in determining the performance and growth of the company over several numbers of reporting…