The horizontal analysis is the comparison of the company's financial status or performance of the previous and current period.
The vertical analysis is the comparison of the company's each item in the statement as a ratio to the given or base item.
Horizontal Analysis
2018 2017 Increase Percent
Net Sales 45,580 39,475 6105 15.465
EBIT 2391 1363 1028 75.422
Net Earnings 1478 971 507 52.214
In the given solution 2017 figures are taken as the base year figures.
Vertical Analysis
2018 Percentage 2017 Percentage
Net Sales 45,580 100 39,475 100%
EBIT 2391 5.246 1363 3.453
Net Earnings 1478 3.242 971 2.46
It is observed that the EBIT of 2017 is greater than EBIT of 2018.
It is observed that the net earnings of 2017 are lesser than those of 2018.
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