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Horizontal (trend) analysis: What is the purpose? What does it compare? How is it conducted? How do you calculate year to year change? How do

Horizontal (trend) analysis:

What is the purpose?

What does it compare?

How is it conducted?

How do you calculate year to year change?

How do you interpret results?

Vertical (common size) analysis:

What is the purpose?

What does it compare?

How is it conducted?

How do you prepare a common size income statement and balance sheet?

How do you interpret results?

Ratio analysis:

Describe each category and list the ratios that belong in that category.

Profitability ratios

Liquidity ratios

Solvency ratios

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