difference in horizontal analysis and vertical analysis
The difference between horizontal analysis and vertical analysis is that vertical analysis involves listing each item on a company's financial statement as a separate column. For example, in vertical analysis, cost of goods sold (COGS) and gross margin are typically listed as a percentage of sales.
Horizontal Analysis. Horizontal analysis focuses on trends and changes in financial statement items over time. Along with the dollar amounts presented in the financial statements, horizontal analysis can help a financial statement user to see relative changes over time and identify positive or perhaps troubling trends.