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Can someone please help me with how to do a vertical and horizontal analysis for the 5 years? I'm confused with how the horizontal is
Can someone please help me with how to do a vertical and horizontal analysis for the 5 years?
I'm confused with how the horizontal is supposed to be like. I saw an example where the years were compared to each other For example, 2015-2014 , 2014-2013, 2013-2012. Is this efficient in studying a company? I also saw a different example with the years all being compared to one base year ....is this preferred? Please explain ..thank you!
Balance Sheet | 2015 | 2014 | 2013 | 2012 | 2011 |
Assets | |||||
Cash and cash equivalents | 5,595 | 8,669 | 3,804 | 6,938 | 9,610 |
Short-term investments | 90,931 | 77,040 | 73,218 | 56,102 | 43,162 |
Accounts receivable | 17,908 | 19,544 | 17,486 | 15,780 | 14,987 |
Inventories | 2,902 | 2,660 | 1,938 | 1,137 | 1,372 |
Deferred income taxes | 1,915 | 1,941 | 1,632 | 2,035 | 2,467 |
Other | 5,461 | 4,392 | 3,388 | 3,092 | 3,320 |
Total current assets | 124,712 | 114,246 | 101,466 | 85,084 | 74,918 |
Property and equipment net | 14,731 | 13,011 | 9,991 | 8,269 | 8,162 |
Equity and other investments | 12,053 | 14,597 | 10,844 | 9,776 | 10,865 |
Goodwill | 16,939 | 20,127 | 14,655 | 13,452 | 12,581 |
Intangible assets, net | 4,835 | 6,981 | 3,083 | 3,170 | 744 |
Other long-term assets | 2,953 | 3,422 | 2,392 | 1,520 | 1,434 |
Total assets | 176,223 | 172,384 | 142,431 | 121,271 | 108,704 |
Liabilities and stockholders equity | |||||
Current liabilities: | |||||
Accounts payable | 6,591 | 7,432 | 4,828 | 4,175 | 4,197 |
Short-term debt | 4,985 | 2,000 | - | - | - |
Current portion of long-term debt | 2,499 | - | 2,999 | 1,231 | - |
Accrued compensation | 5,096 | 4,797 | 4,117 | 3,875 | 3,575 |
Income taxes | 606 | 782 | 592 | 789 | 580 |
Short-term unearned revenue | 23,223 | 23,150 | 20,639 | 18,653 | 15,722 |
Securities lending payable | 92 | 558 | 645 | 814 | 1,208 |
Other | 6,766 | 6,906 | 3,597 | 3,151 | 3,492 |
Total current liabilities | 49,858 | 45,625 | 37,417 | 32,688 | 28,774 |
Long-term debt | 27,808 | 20,645 | 12,601 | 10,713 | 11,921 |
Long-term unearned revenue | 2,095 | 2,008 | 1,760 | 1,406 | 1,398 |
Deferred income taxes | 2,835 | 2,728 | 1,709 | 1,893 | 1,456 |
Other long-term liabilities | 13,544 | 11,594 | 10,000 | 8,208 | 8,072 |
Total liabilities | 96,140 | 82,600 | 63,487 | 54,908 | 51,621 |
Stockholders equity: | |||||
Common stock and paid-in capital | 68,465 | 68,366 | 67,306 | 65,797 | 63,415 |
Retained earnings | 9,096 | 17,710 | 9,895 | (856) | (8,195) |
Accumulated other comp. income | 2,522 | 3,708 | 1,743 | 1,422 | 1,863 |
Total stockholders equity | 80,083 | 89,784 | 78,944 | 66,363 | 57,083 |
Total liabilities and stockholders equity | 176,223 | 172,384 | 142,431 | 121,271 | 108,704 |
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