Vertical Analysis Of Income Statement Excel

The comparison of each number becomes easier when compared as a percentage of sales revenue.

Vertical analysis of income statement excel. Vertical analysis formula for the income statement and balance sheet are given below. Vertical analysis also called common size analysis takes the sales and looks at each line items so that you can easily compare the income statements and balance sheets vertical analysis on an income statement will show the sales number sometimes listed as revenue as 100 and every other account will show as a percentage of the total sales number. We can perform horizontal analysis on the income statement by simply taking the percentage change for each line item year over year. Thus just insert the respective amounts of the balance sheet in the light blue columns.

Generally the total of sales revenue is considered as the base figure for income statement analysis. Vertical analysis formula balance sheet balance sheet item total assets liabilities 100. Balance sheet vertical analysis template is a ready to use template in excel google sheet and openoffice to analyze the relative percentage change over a period. Vertical analysis of the income statement vertical analysis of the income statement all amounts are in millions except per share data vertical analysis year 2019 year 2018 accounts amount percent amount percent total net revenue 26 508 6 100 0 24 719 5 100 0 cost of sales 8 526 9 32 2 7 930 7 32 1 store operating expenses 10 493 6 39 6.

It is one of the popular methods of financial statement analysis. Excel horizontal analysis vertical analysis. The common size or vertical analysis of income statement is the statement where each line item is expressed as a percentage of sales. A vertical analysis is used to show the relative sizes of the different accounts on a financial statement.

Vertical analysis formula income statement income statement item total sales 100. This vertical analysis of income statement shows each item as a percentage of the base figure within the income statement.