Financial Statement Analysis: Vertical Analysis – Financial Accounting video

Accounting

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Discussion of the different ways of performing financial statement analysis including examples of ratio calculations and comparisons.

Accompanying lecture notes:

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Other videos in this series:
Part 1 – Introduction to Financial Statement Analysis
Part 2 – Horizontal Analysis
Part 3 – Trend Analysis
Part 5 – Comparing One Company with Another
Part 6 – Using Ratios and Comparing to Industry Averages (Part 1)
Part 7 – Using Ratios and Comparing to Industry Averages (Part 2)
Part 8 – Using Ratios and Comparing to Industry Averages (Part 3)
Part 9 – Using Ratios and Comparing to Industry Averages (Part 4)
Part 10 – Using Ratios and Comparing to Industry Averages (Part 5)

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Financial Statement Analysis – Vertical Analysis video by TheAccountingDr:

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14 Comments

  1. Anonymous says

    Hey Prof, quick question. When doing these types of analysis, we only include the main accounts in the balance sheet, right? As in PPE net, instead of doing each individual account that goes into that account (lands, buildings, etc)?

  2. Brian Routh TheAccountingDr says

    nawwaf husseini, this question is very difficult to answer as it may change depending on the industry of the company. Some companies are very highly financed by debt whereas others may be more heavily financed with equity. In all financial analysis situations, it’s imperative to do your research within the industry of the company that you are investigating to ensure that it close to the industry average or better.

  3. Sarah L says

    Hello Brain,
    I just wanted to say thank you for making it simple. I really like that you walk through each step. With my accounting class my mind is often way over thinking simple and sometimes it is hard to back track to simple things. Again thank you for walking through the math of the problem and not just assuming we all know what we are doing.

  4. Jairen Chan says

    Thanks, big help 

  5. Lamiks Vid-eos says

    Dude, thank you. I was lost. 29 year old college junior here. I’ve been out of school for a while but your video just helped me @ 1:07a.m. THANK YOU AGAIN!

  6. Francisca Valenzuela says

    thanks i understand you betetr then my books

  7. klea orosa says

    Hello Sir. Brian,
    Thank you so much for this lecture your really help me a lot. 

  8. Antoinette Milano says

    Thanks Brian! Loved this tutorial. Very concise and to the point as well as helpful.

  9. Jessica Mitchell says

    How would you calculate net income if you already had just the percentages?

  10. Momtopeaches says

    THANK YOU!!!

  11. Silvia Delgado says

    hello, i want to know if debts can go in total assets in our vertical analysis?… i don’t understand my slides… I studied that Debts=liabilities, right? so, why debts are in the total assets percentage? please help…..

    1. Brian Routh TheAccountingDr says

      +Silvia Delgado I think you are speaking about how we get total liabilities as a percentage of Total Liabilities + Owners’ Equity (which also equals Total Assets): recall that assets = Liabilities + Owners’ Equity. I hope this helps. Happy Accounting!

  12. Frank Vuocolo says

    Thank you for this video! It was very helpful, and clearly explained!

  13. Master Franko says

    thank you

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