Vertical Analysis Of Income Statement In Excel

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.

Vertical analysis of income statement in excel. The cost of sales has been in the range of 41 44 historically. In the below snapshot we have divided each income statement line item with net sales for the period between 2007 to 2015. Incomes expenses and taxes are represented as the proportion of the total sales. Understand below what a horizontal and vertical analysis is.

Vertical analysis of colgate s income statement. It evaluates the evolution of balance sheet or income statement elements. 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. By just looking at an income statement or a balance sheet it can be difficult to interpret all the dollar amounts from one accounting period to another or to interpret one company s financial records compared to another s over a period of time.

Thus just insert the respective amounts of the balance sheet in the light blue columns. 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. A vertical analysis is used to show the relative sizes of the different accounts on a financial statement. While performing income statement vertical analysis all the amount from all 3 major categories of accounts in an income statement viz.

Download horizontal and vertical analysis excel balance sheet spreadsheet example. Monthly quarterly or yearly comparative evolution are the most common in this analysis.