If an analyst wants to see how gross profit of a company has changed from one year to the next, vertical analysis would be used.

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Vertical analysis is used to see how each item on a company's financial statement relates to its total revenue or assets, expressed as a percentage. To compare the gross profit of a company from one year to the next, horizontal analysis (also known as trend analysis) would be used.

If an Analyst Wants to See How Gross Profit of a Company