Horizontal Analysis Calculator
Horizontal Analysis: A Comprehensive Guide
Module A: Introduction & Importance
Horizontal analysis is a financial statement analysis technique that compares financial statements of a company over different time periods. It helps identify trends and patterns in a company’s financial performance…
Module B: How to Use This Calculator
- Enter the revenue and expenses for the period you want to analyze.
- Select the number of years you want to compare.
- Click ‘Calculate’.
Module C: Formula & Methodology
The horizontal analysis formula is simple: (Current Year – Previous Year) / Previous Year * 100 = Percentage Change…
Module D: Real-World Examples
| Year | Revenue | Expenses |
|---|---|---|
| 2020 | $100,000 | $60,000 |
| 2021 | $120,000 | $70,000 |
Module E: Data & Statistics
| Year | Revenue Growth | Expense Growth |
|---|---|---|
| 2020-2021 | 20% | 16.67% |
Module F: Expert Tips
- Always compare the same line items year over year.
- Consider external factors that may affect the changes.
Module G: Interactive FAQ
What is horizontal analysis?
Horizontal analysis is a financial statement analysis technique…
SEC’s Small Business and BLS’s Financial Statement Analysis are excellent resources.