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Interpreting Horizontal Analysis results Income Statement ( SM ) 2 0 2 1 2 0 2 0 % Change Net Sales: 2 5 0 .
Interpreting Horizontal Analysis results
Income Statement SM Change
Net Sales:
Cost of Goods Sold
Gross Profit
SG&A Expenses
Operating Income
Interest Expense
Income Tax Expense
Net Income
You have been analyzing your company's performance over the past few years and decided to conduct a horizontal analysis. Your results are above.
Some of the results are causing you concern. What are these and why do they concern you?
What caused your Net Income to increase so much more than the increase in Net Sales?
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