How Is Vertical Analysis Calculated

Vertical Analysis Calculator




Introduction & Importance

Vertical analysis is a crucial financial analysis tool that helps compare a company’s financial statements with industry averages or competitors. It expresses each item as a percentage of a base figure, typically total revenue or total expenses.

How to Use This Calculator

  1. Enter the revenue, cost of goods sold, and gross profit figures.
  2. Click the ‘Calculate’ button.
  3. View the results and chart below.

Formula & Methodology

Vertical analysis uses the following formula to calculate each line item as a percentage of the base figure:

Percentage = (Line Item / Base Figure) * 100

Real-World Examples

Data & Statistics

Industry Average Vertical Analysis
Line ItemPercentage of Revenue
Cost of Goods Sold60%

Expert Tips

  • Use vertical analysis to identify trends and make informed decisions.
  • Compare your results with industry averages to benchmark your performance.

Interactive FAQ

What is vertical analysis?

Vertical analysis is a financial analysis method…

Vertical analysis comparison chart Vertical analysis example

For more information, see the Investopedia guide and the BLS handbook.

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