Vertical Analysis Income Statement Calculator

We can perform horizontal analysis on the income statement by simply taking the percentage change for each line item year over year.

Vertical analysis income statement calculator. Vertical analysis formula for the income statement and balance sheet are given below. Vertical analysis is the proportional analysis of a financial statement where each line item on a financial statement is listed as a percentage of another item. Vertical analysis of income statement income statement item total sales 100. All the line items in a vertical analysis are compared with another line item on the same statement.

Vertical analysis formula balance sheet balance sheet item total assets liabilities 100. 530 000 1 230 500 100 43 3. Vertical analysis formula income statement income statement item total sales 100. Vertical analysis states financial statements in a comparable common size format percentage.

The vertical analysis calculator allows for details of an income statement and a balance sheet to be entered and calculates each line item as a percentage of the relevant base line item. Line item line item amount base line item amount. Vertical analysis compares and establishes a relationship between a single item to the total transactions. The use of vertical analysis as a comparison tool is discussed more fully in our vertical analysis tutorial.

For example on the income statement if the base chosen is revenue then each line item would be expressed as a percentage of revenue. By using horizontal analysis we can now clearly see that google s revenue gross profit and ebitda grew faster than apple s in every year except for 2015 and one ebita exception in 2018 with 2016 looking. Similarly calculate for the years 2017 and 2016. In the case of an income statement it is revenue net sales.

This means that every line item on an income statement is stated as a percentage of gross sales while every line item on a balance sheet is stated as a percentage of total assets. The vertical analysis is conducted on all items in the income statement and the balance sheet. Comparative balance sheet with vertical analysis. An example of the vertical analysis of balance sheet and income statement is given below.

Vertical analysis of income statements for the year 2018 is calculated as. The vertical analysis formula used to calculate the line item percentages is as follows. This video walks you through how to calculate the numbers required for vertical analysis. Vertical analysis horizontal analysis and analysis of financial ratios.

Comparative income statement with vertical analysis. Financial analysis comprises of three parts. 550 000 1 139 500 100 48 3 2017. Vertical analysis of the income statement shows the revenue or sales number as 100 and all other line items as a percentage of sales.