Horizontal Analysis

Horizontal Analysis also termed as Trend Analysis compares a company’s performance over the years i.e. as compared to the last year(s). The number of years over which analysis is required, are entered in columnar format and change from last year in terms of amount and percentage is analyzed.

Example:

Horizontal analysis of balance sheet and profit & loss account based on the above data would be as follows:

One thought on “Horizontal Analysis”

  1. rxoc says:

    Great article, very useful !!

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