What is the difference between vertical analysis and horizontal analysis?

Vertical analysis reports each amount on a financial statement as a percentage of another item. For example, the vertical analysis of the balance sheet means every amount on the balance sheet is restated to be a percentage of total assets

Horizontal analysis looks at amounts on the financial statements over the past years. For example, the amount of cash reported on the balance sheet at December31 of2012,2011,2010,2009, and2008 will be expressed as a percentage of the December31,2008 amount.

Vertical analysis reports each amount on a financial statement as a percentage of another item while Horizontal analysis looks at amounts on the financial statements over the past years.

Vertical analysis analyse the current year's performance and horizontal analysis analyse past years performance.