Vertical analysis of a financial statement shows the relationship of an item to the total on the statement.

Name: Vertical analysis of a financial statement shows the relationship of an item to the total on the statement.
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Vertical analysis, also known as common-size analysis, expresses each line item on a financial statement as a percentage of a common base or total, making it possible to compare items and evaluate their relative significance within the statement.

Vertical Analysis of a Financial Statement Shows the Relationship of an Item