Question

Why are horizontal and vertical analyses used to compare a company’s financial performance across time and against benchmarks?

Answer 1

Answer:

The financial analyst employs a broad range of methods and techniques for company analysis. Like a mechanic, he selects the tool that most suits his needs. Some of the most popular methods are computationally simple and can be applied by just about everyone. Understanding some of these tricks of the trade is important for analyzing companies you may be interested in investing in or for analyzing your own business.

Answer 2

Explanation:

a company's financial performance across time and against ... Vertical analysis is a method of financial statement.

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