Definitions for "Vertical analysis"
An analysis of the profit and loss account (or balance sheet) in which each item is expressed as a percentage of the total. The vertical analysis provides evidence of structural changes in the business such as increased profitability through more efficient production.
The process of reducing all items in the balance sheet and income statement to a percentage of total assets or sales revenue, respectively.
The process of analyzing the financial statements (normally) with the purpose of understanding financial relationships and detecting anomalies.