Vertical Analysis - Meaning, Formula, Calculation & Interpretations

In this tutorial, we will learn what is Vertical Analysis, its formulas and step-by-step calculations. Following that, we will perform vertical analysis of the Colgate Case Study and interpret the results.

What is Vertical Analysis?
--------------------------------------------
Vertical analysis is a financial statement analysis technique in which each item in the financial statement is represented as a percentage of the base figure.

Formula
--------------------------------------------
Vertical Analysis formula = Individual Item / Base Amount *100

Advantages of Performing Vertical Analysis
--------------------------------------------
• Vertical analysis is one of the most simple and direct methods of financial analysis.
• It yields a comparable percentage that can be compared to previous year’s percentages of the same organization.
• Because the comparison is made in percentages, it also helps to compare the financial statements of various organizations.

To know more about Vertical Analysis in Finance, you can go to this link:

🔗 Watch the Full Playlist Here:
👩‍💻 Learn Step-by-Step:

Connect with us!

[wallstreetmojo]

💡 Complete Ratio Analysis Tutorial Series (33 Videos)💡

📥 Download the Free Colgate Ratio Analysis Template Here:
🔗 Watch the Full Playlist Here:
👩‍💻 Learn Step-by-Step:
🔔 Don’t forget to subscribe for more Ratio Analysis Tutorials!
💬 Have questions or feedback? Drop them below— We're here to help!

[harshadakhot]

Very useful and understandable. Thank you, sir.

[mazharhussain]

I have watched some of you videos. Dheeraj sahib, your way of explanation is wonderful and shows you the understanding and clarity that you have. I wish I could attend the course but unfortunately, I cant afford to pay right now.

[srmchinni]

Knowledgeable video and I follow your website too.
These are too good.

[karishma_nigam]

Thankyou! Very useful and understandable 🙂

[BhawanaTiwari-zbkc]

While doing horizontal analysis of equity should we divide it by the amount of equity+liabilities?

[Mad]

Do we need to download colgate report for undrstanding the video?

[cmanas]

It would be beneficial if you can create a tutorial series specific to IT Service industry as the income statement and Balance sheet of such companies are slightly different.

[monysain]

Sir your download excel template isn't downloading anything even tho I've given the email it isn't downloading anything

[AMIRSOHAIL-lido]

Can't understood this topic in my campus because my teachers can't explain it in this form, but sir made it a piece of cake, thank you❤❤❤ sir

[shaileshpundage]

Sir mai PP bag ka unit suru kr raha hu ..to row material, labor charg, electricity bill, or baki kharcha hota hai to in sabhi ka cost kaise calculate kre.. please Info Dijiye sir

[methariraju]

Hi sir gd evening
When will start investment banking course

[carlonacional]

thankyou for discussing so well thanks

[chintanhasnani]

Thank you and a great value addition also will we discuss about the reasons for change in these ratios as you said we will have to dig out from 10-k reports

[Pshoraa]

please make VIDEO in DIVIDEND DECISIONS

[derekcorry]

thanks for this interesting but easy to understand explanation.

[sarojdarnal]

Thank you so much sir. Its very useful.

[Mad]

3 Financial statements, Capital budgeting, M & A, Variance analysis.. videos and excel sheets please

[HarishKumar-emri]

Audio quality is poor, so is the volume. Need to increase your volume up or amplify the audio. The audio is still low while my phone volume is at peak.