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Vertical analysis is the proportional analysis of a financial statement, where each line item on a financial statement is listed as a percentage of another item. Typically, this means that every line item on an income statement is stated as a percentage of gross sales, while every line item on a balance sheet is stated as a percentage of total assets.
For more information:
http://www.accountingtools.com/vertical-analysis
http://www.accountingformanagement.org/vertical-analysis-of-financial-statements/
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