Enter the statement line item and the total base figure into the calculator to calculate the vertical analysis.

## Vertical Analysis Formula

The following equation is used to analyze a financial statement using vertical analysis.

VA = (SL/B) * 100

• Where VA is the vertical analysis (%)
• SL is the statement line item (\$)
• B is the total base figure/amount (\$)

## Vertical Analysis Definition

A vertical analysis is defined as the process of looking at financial statement lines when compared to a base figure or amount.

## Vertical Analysis Example

How to calculate a vertical analysis?

1. First, determine the statement line item.

Calculate the statement line item amount.

2. Next, determine the figure.

Calculate the base amount.

3. Finally, calculate the vertical analysis.

Perform the vertical analysis using the formula above.

## FAQ

What is a vertical analysis?

A vertical analysis is a process of analyzing financial statements as a percentage of a total base item. In other words, the ratio of a statement line item to the base item.

What is vertical analysis used for?

Vertical analysis is most often used when looking at income statements, balance sheets, or cash flow statements to understand how each line item affects the overall statements.