A type of financial statement analysis that involves calculating the absolute amount and the percentage of the increase or decrease in a specified financial statement from one reporting period to another. Contrast with vertical analysis.
One component of financial statement analysis. This method involves financial statements reporting amounts for several years. The earliest year presented is designated as the base year and the subsequent years are expressed as a percentage of the base year amounts. This allows the analyst to more easily see the trend as all amounts are now a percentage of the base year amounts. To Top
The process of dividing each expense item of a given year by the same expense item in the base year. It allows assement of changes in the relative importance of expense items over time and the behavior of expense items as sales change.