Vertical analysis makes it easier to compare different companies.

Name: Vertical analysis makes it easier to compare different companies.
Brand: Quizplus
Rating: 4.8 (31 reviews)

Question

Quizplus · Accepted Answer

Vertical analysis involves expressing each line item on a financial statement as a percentage of a common base, such as total assets or total revenue. This allows for easier comparisons between companies, as the analysis focuses on the proportion of each item relative to the whole.

Vertical Analysis Makes It Easier to Compare Different Companies