Vertical Analysis - Meaning, Formula, Calculation & Interpretations

Описание: In this tutorial, we will learn what is Vertical Analysis, its formulas and step-by-step calculations. Following that, we will perform vertical analysis of the Colgate Case Study and interpret the results.

Download the Colgate Excel Model Ratio Analysis Template - This template will be used for the analysis. You can download the ratio analysis template from this link - https://tinyurl.com/colgate-template

What is Vertical Analysis?
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Vertical analysis is a financial statement analysis technique in which each item in the financial statement is represented as a percentage of the base figure.

Formula
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Vertical Analysis formula = Individual Item / Base Amount *100

Advantages of Performing Vertical Analysis
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• Vertical analysis is one of the most simple and direct methods of financial analysis.
• It yields a comparable percentage that can be compared to previous year’s percentages of the same organization.
• Because the comparison is made in percentages, it also helps to compare the financial statements of various organizations.

To know more about Vertical Analysis in Finance, you can go to this link:
https://www.wallstreetmojo.com/vertic...

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   • Ratio Analysis Tutorials  
👩‍💻 Learn Step-by-Step:
📌 Part 1:    • Ratio Analysis - Meaning, Types, Step by S...  
📌 Part 2:    • Vertical Analysis  - Meaning, Formula, Cal...  
📌 Part 3:    • Horizontal Analysis   - Meaning, Formula, ...  
📌 Part 4:    • Trend Analysis - Meaning, Formula, Calcula...  
📌 Part 5:    • Current Ratio  - Meaning, Formula, Calcula...  
📌 Part 6:    • Quick Ratio  - Meaning, Formula, Calculati...  
📌 Part 7:    • Cash Ratio - Meaning, Formula, Calculation...  
📌 Part 8:    • Accounts Receivables Turnover Ratio - Mean...  
📌 Part 9:    • Days Receivables - Meaning, Formula, Calcu...  
📌 Part 10:    • Inventory Turnover Ratio - Meaning, Formul...  
📌 Part 11:    • Days Inventory - Meaning, Formula, Calcula...  
📌 Part 12:    • Accounts Payable Turnover Ratio - Meaning,...  
📌 Part 13:    • Days Payable Outstanding - Meaning, Formul...  
📌 Part 14:    • Cash Conversion Cycle - Meaning, Formula, ...  
📌 Part 15:    • Asset Turnover Ratio- Meaning, Formula, Ca...  
📌 Part 16:    • Net Fixed Asset Turnover Ratio- Meaning, F...  
📌 Part 17:    • Equity Turnover Ratio- Meaning, Formula, C...  
📌 Part 18:    • Gross Profit Margin- Meaning, Formula, Cal...  
📌 Part 19:    • Operating Profit Margin- Meaning, Formula,...  
📌 Part 20:    • Net Income Margin - Meaning, Formula, Calc...  
📌 Part 21:    • Return on Assets (ROA) - Meaning, Formula,...  
📌 Part 22:    • Return on Equity (ROE) - Meaning, Formula,...  
📌 Part 23:    • Return on Owners Equity - Meaning, Formula...  
📌 Part 24:    • DuPont ROE Analysis - Meaning, Formula, Ca...  
📌 Part 25:    • Operating Leverage - Meaning, Formula, Cal...  
📌 Part 26:    • Financial Leverage - Meaning, Formula, Cal...  
📌 Part 27:    • Total Leverage - Meaning, Formula, Calcula...  
📌 Part 28:    • Leverage Ratio (Debt to Equity)  - Meaning...  
📌 Part 29:    • Interest Coverage Ratio - Meaning, Formula...  
📌 Part 30:    • DSCR (Debt Service Coverage Ratio) - Meani...  
📌 Part 31:    • Bid-Ask Spread - Meaning, Formula, Calcula...  
📌 Part 32:    • Trading Volume - Meaning, How to Interpret?  
📌 Part 33:    • Sustainable Growth Rate - Meaning, Formula...  

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