Horizontal Analysis In Income Statement

A complete horizontal analysis of income statement might tell us that while our.
Horizontal analysis in income statement. Likewise we can do the same for all the other entries in the income statement. Here we have the yoy growth rates of colgate s income statement from 2008 until 2015. We calculate the growth rate of each of the line items with respect to the previous year. Colgate horizontal analysis example.
All items on the balance sheet and income statement for the year 2008 have been compared with the items of balance sheet and income statement for the year 2007. To get a clear picture of the performance of our business we need to do a horizontal analysis of each item in our income statement. Horizontal analysis of an income statement. Trend analysis for income statement items using excel.
Let us now look at the horizontal analysis of colgate. An evaluation of one process or activity across several groups or departments within an enterprise. A horizontal audit is appropriate for processes and activities that are. In above analysis 2007 is the base year and 2008 is the comparison year.