No one is better or worse these are both methods for analysis which are somewhat different to each other as in vertical analysis comparison is made between different heads of accounts while in horizontal analysis comparison is made with competitors financial statements.
Vertical analysis, or common-sized statements , each amount on a financial statement as a percentage of another item. It can also to analysis income statement, balance sheet and cash flow statement.Eg. Income statement : turnover is expressed as 100% and every item in the income statement is expressed as a percentage of turnover (sales).
The base for any item in a vertical analysis is Net Sales. This is because you are dividing the item, in this case the cost of goods sold, by the net sales to figure the percentage.
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A method of financial statement analysis in which each entry for each of the three major categories of accounts (assets, liabilities and equities) in a balance sheet is represented as a proportion of the total account. The main advantages of vertical analysis is that the balance sheets of businesses of all sizes can easily be compared. It also makes it easy to see relative annual changes within one business
The vertical axis
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The x axis is the horizontal axis. The y axis is the vertical axis.
Following are two kinds of financial analysis: 1 - Horizontal Analysis 2 - Vertical Analysis
profitability analysis
Heat in the atmosphere is distributed in vertical mixing process by means of convection. It is also known as the process of vertical distribution.
No one is better or worse these are both methods for analysis which are somewhat different to each other as in vertical analysis comparison is made between different heads of accounts while in horizontal analysis comparison is made with competitors financial statements.
vertical analysis
A vertical structure is also known as a centralized organization. In business, it relies on top level managers to run smoothly.
Horizontal, Vertical, Depth
Force can be resolved into horizontal and vertical components using vector analysis. However stress cannot be resolved into horizontal and vertical components using vector analysis since it is not a vector but a tensor of second order.
The horizontal axis is also known as the 'X' axis. The vertical axis is also known as the 'Y' axis.