Horizontal Analysis Calculator
Horizontal analysis is a financial analysis technique used to compare a company’s financial statements over multiple periods. It helps identify trends and patterns in a company’s financial health. Understanding how to calculate a horizontal analysis is crucial for investors, analysts, and business owners.
How to Use This Calculator
- Enter the revenue and expenses for the period you want to analyze.
- Choose a growth rate from the dropdown menu.
- Click the “Calculate” button.
- View the results and chart below the calculator.
Formula & Methodology
Horizontal analysis uses the following formula to calculate the growth rate:
Growth Rate = [(Current Period – Previous Period) / Previous Period] * 100
The calculator uses this formula to calculate the growth rate for revenue and expenses, then displays the results.
Real-World Examples
Data & Statistics
| Company | 2018 | 2019 | 2020 |
|---|---|---|---|
| Apple | 256.8 | 294.5 | 365.8 |
| Microsoft | 110.3 | 143.0 | 168.1 |
Expert Tips
- Use horizontal analysis to identify trends and patterns over time.
- Compare your results with industry averages to benchmark your company’s performance.
- Regularly review your financial statements to make data-driven decisions.
Interactive FAQ
What is horizontal analysis?
Horizontal analysis is a financial analysis technique used to compare a company’s financial statements over multiple periods.
For more information, see the following authoritative sources: