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 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?

**First, determine the statement line item.**Calculate the statement line item amount.

**Next, determine the figure.**Calculate the base amount.

**Finally, calculate the vertical analysis.**Perform the vertical analysis using the formula above.

## FAQ

**What is a vertical analysis?**

A vertical analysis is the 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 effects the overall statements.