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