In determining whether a company's financial condition is improving or deteriorating over time, vertical analysis of financial statement data would be more useful than horizontal analysis.

Question

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Vertical analysis provides a snapshot of financial statement data at a single point in time, while horizontal analysis compares financial data over multiple periods to identify trends and changes, making it more useful for assessing improvement or deterioration over time.

In Determining Whether a Company's Financial Condition Is Improving or Deteriorating