1. Analysis of Financial Statements
Simplified without fly-ins

2. Vertical analysis on the income statement uses total or net revenues for the denominator
Answers the question: How much of our total revenues were consumed by each expense?

3. Vertical analysis on the balance sheet uses total assets for the denominator
Answers the question: How much of our total assets are represented by each asset category?

4. Horizontal analysis on the income statement and balance sheet use the previous period’s entry as the denominator and the difference between the current and previous periods for the numerator.
(CashQ2 – CashQ1) X 100
CashQ1