Shante B.

asked • 08/23/14

What is the significance between the methods of analysis : horizontal analysis, vertical analysis, and ratio analysis.

how does the financial information is used help to make a particular decision?A

Bob A.

I don't know if this is what you are looking for so I am not putting it as an answer in hopes someone else will  chime in.
 
In scientific studies a horizontal study is when you study something happening at a certain time (or at the same, or about the same time). Like seeing how many people are overweight now and how many have heart attacks now.

A vertical study is when you study the same thing over time. Like the Framingham Heart Study, you find a group people and study how things happen to them over many years. Sometimes the group you study is a particular group to see how that group with certain criteria develops. (Maybe you study people who lived within 50 miles or Chernobyl) Sometimes the group is random and representative of a population.
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08/23/14

1 Expert Answer

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Sherryse H. answered • 09/12/14

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Accounting, Income Tax, Excel

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Accounting:
Vertical analysis of a financial statement ... each line item on a financial statement is listed as a percentage of another item ...
 
Horizontal analysis is the comparision of historical financial information against a variety of reporting periods ...
 
Ratio analysis involves comparing balance sheet items : assets, liabilities, equity...  
 
e.g. debt/equity ...
 
 
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