Vertical Analysis of P&L in 1 Minute #shorts

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Here is a common type of income statement analysis referred to as Vertical Analysis. It is extremely simple and provides powerful insight into the financial results, And here is how you do it:

1. Grab your income statement by month
2. Create a formula that measures each line item as a ratio of your total revenue

In summary this analysis gives you the necessary insights to take action to improve the bottom line in your business.

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[rjcarter]

Literal gold. Financial analysts are important, but an accountant with fp&a skillset is a force to be reckoned with!

[juhimalhotra]

Your content is amazing and the way you explain is awesome👌

[rcuetojr]

This is great… Definitely my go to when reviewing P&L at close with the Controllers and division leads. % Revenue and Trend ( Avg Run Rate prior months vs Actuals for the period) Immediately highlights risks, what else is left to book, Over/Under, etc.)

[mental]

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