You will need
- calculator
Instruction
1
Define the basic article analysisiremove of its financial reports. In conducting the analysisas of the balance sheet as the base indicator is the value of the balance sheet, statement of profit and loss - amount of earnings, statement of cash flows - the amount of growth funds during the period.
2
Express article of the financial statement as a percentage of baseline. To do this, the value of each article is divided by the base value and multiplied by 100. The value of the basic article will be 100%.
3
Next to the absolute value of each row of the report write to her a percentage of the base value. Thus, you will receive a vertical structure analysisiremove of its financial reports.
4
Depending on the goals of vertical analysisand you can, for example, correlate the structure of the financial report with averages for the industry to determine the company's position in the market. Or, aboutanalysisirova the weight of each article to draw conclusions about the presence of the company of those or other problems and benefits.
Note
Vertical analysis of financial statements is combined in the horizontal and ratio analysis.
Useful advice
Vertical analysis accounting or financial Department of the company on a permanent basis. Usually analyzed accounting statements - the balance sheet, statement of profit and loss, statement of cash flows.
