How To Calculate Horizontal Analysis Of Financial Statements

Introduction & Importance

Horizontal analysis, also known as trend analysis, is a technique used to evaluate the financial statements of a company over a period. It helps in understanding the changes in the company’s financial position and performance…

How to Use This Calculator

1. Enter the sales figures for the previous and current years.
2. Click the ‘Calculate’ button.
3. View the results and chart below.

Formula & Methodology

The formula for calculating the growth rate is:

Growth Rate = [(Current Year's Sales - Previous Year's Sales) / Previous Year's Sales] * 100

Real-World Examples

Data & Statistics

Year	Sales	Growth Rate

Expert Tips

• Compare the growth rate with industry averages to benchmark performance.
• Analyze other financial statement accounts to gain a holistic view of the company’s performance.

Interactive FAQ

What is horizontal analysis?

Horizontal analysis is a technique used to evaluate the financial statements of a company over a period…

For more information, see the Investopedia guide and the Accounting Coach tutorial.