What is the difference between vertical analysis and horizontal analysis?

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Both horixontal and vertical snalysis are are part of financial statement analysus. *vertical snslysis results in every income statement amount beeing presented as a percentage of sales. *Vertical analysis re reports every each amount on a financial statements as a percentage of another item. *The restarted amounts of from vertical analysis ofthe balance sheet will be presebted as a common_size balance sheet. *Horizontal analysis is a look at amounts on the financial statement over the past year

In horizontal analysis gross figures (i.e. absolute values) are considered whereas the vertical analysis considers the variables is percentage (%).

Horizontal analysis makes comparisons of numbers or amounts in time while vertical analysis involves displaying the numbers as percentages of a total in order to compare them. Both are useful financial analysis techniques that calculate relationships between figures in balance sheets and income statements.