Vertical analysis compares a line item on the balance sheet,in a current period,to the same line item on the balance sheet in a prior period.

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Vertical analysis is a method where each line item on a financial statement is listed as a percentage of another item. For example, on a balance sheet, each line item is expressed as a percentage of total assets. It does not compare the line item to its value in a prior period; that would be horizontal analysis.

Vertical Analysis Compares a Line Item on the Balance Sheet,in