Create a free account to get started

Unlock full course notes by signing up

  • Video lessons taught by top educators
  • Practice questions with guided solutions
  • Written review notes for reference
  • Expert answers anytime from course tutors

Horizontal Analysis

Many decisions taken within organizations depend on trends in important financial figures, like sales, costs, profits, etc. A horizontal analysis is the percentage change in an account value between two accounting periods.



Image illustrating Horizontal Analysis



Create a free account to get started

Unlock full course notes by signing up

  • Video lessons taught by top educators
  • Practice questions with guided solutions
  • Written review notes for reference
  • Expert answers anytime from course tutors

Example: Horizontal Analysis

Perform a horizontal analysis of Inventories


Image illustrating Example







Practice: Horizontal Analysis

Conduct a horizontal analysis for Total Revenue


Enter your answers in percentage format and rounded to 2 decimal places. For example, 0.24356 should be entered as 24.36

Illustration for practice question: Practice: Horizontal Analysis


AccountHorizontal Analysis (%)
Total Revenue

Create a free account to get started

Unlock full course notes by signing up

  • Video lessons taught by top educators
  • Practice questions with guided solutions
  • Written review notes for reference
  • Expert answers anytime from course tutors