Home » Financial Statement Analysis: Vertical Analysis – Financial Accounting video financial analysis

Financial Statement Analysis: Vertical Analysis – Financial Accounting video financial analysis



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

The website mentioned in the video is no longer active. You can visit my website at www.TheAccountingDr.com or access Accompanying lecture notes:

Thank you all for your wonderful support. Because of your support we have been able to reach and help numerous accounting students all over the world. Please continue to be a part of our mission to help other accounting students be successful by giving our videos thumbs up, adding our videos to your favorites and subscribing to our YouTube channel (click on more info on the videos).

See also  Snowflake Stock Analysis (Snow Stock) | Buy The Dip? | snow stock 업데이트

Subscribe:

Friend me on Facebook:

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)

See also  Zom | zom 최신

For more accounting/how to eLectures (and accompanying lecture notes), blog and a discount textbook-store visit

Please note that videos may require Flash media and may not play on devices without Flash capabilities (i.e. iPad). You may view the entire video without Flash media at

Financial Statement Analysis – Vertical Analysis video by TheAccountingDr: .

Images related to the topic financial analysis

Financial Statement Analysis: Vertical Analysis - Financial Accounting video

Financial Statement Analysis: Vertical Analysis – Financial Accounting video

Search related to the topic Financial Statement Analysis: Vertical Analysis – Financial Accounting video

#Financial #Statement #Analysis #Vertical #Analysis #Financial #Accounting #video
Financial Statement Analysis: Vertical Analysis – Financial Accounting video
financial analysis
See all the latest ways to make money online: See more here
See all the latest ways to make money online: See more here

27 thoughts on “Financial Statement Analysis: Vertical Analysis – Financial Accounting video financial analysis”

  1. Im here 1 hour before I take an exam and wheeww you just lowered my anxiety. Your teaching technique is very clear and easy to follow. Thank you !

  2. 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…..

  3. 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. 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.

  5. 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)?

  6. Hi DJ… Thank you for watching my financial accounting video on vertical analysis… I am glad that you found it helpful. I do have videos available on ratio analysis on my YouTube home page or my website at TheAccountingDr . com (under videos, Financial Statement Analysis). Please subscribe to my YouTube channel to receive notifications as new accounting videos are posted.

    Happy Accounting!

  7. I was little bit struggle about accounting for doing homeworks, assignments and prefer to my uni exam and I was searching on the internet and find this one and it was totally awesome and easy to understand step by step thank you so much umm can I ask one for… what if I have question about any other quetions about accounting such as calculate any type of ratio etc. whenever you check and help to answer please? Sincerely, In-Kyu Hwang call me DJ, I use that for my english name

  8. Thanks for your question. This is actually not easily answered. Some ratios do have a "rule of thumb" that managers/investors can use to evaluate a company's financial health. However, most ratio analysis must be compared to the industry averages that a certain company belongs to. For example, you can't compare the ratios of Radio Shack with those of Wal-Mart; they are in two different industries.

    Thanks for watching my accounting videos. Visit me online @ TheAccountingDr . com

  9. We use the percentages on the balance sheet to help make future decisions. For example, if you are researching/examining a company for investing purposes and you find that accounts receivable (money owed to the company by customers) is 85% of total assets that may give you reason for pause. This would mean that all other assets make up on 15% of total assets (i.e. cash, inventory, prepaids, etc.). Percentages give a quick way to make observations and decisions that $ sometimes does not provide.

  10. Under a vertical analysis (up and down) we express each item on the balance sheet as a percentage of total assets. For example, if we divide our cash by total assets, that will give us the percentage of total assets made up of cash versus the other assets. This gives further insight into decision making.

  11. I am glad that you enjoyed my accounting video on vertical analysis. I have enjoyed making all the videos so far and I hope that I will be able to get more up soon. Let me know if there is a specific topic of interest and I will try and get that up as soon as possible.

    Please subscribe to my channel so you will be notified you I upload new videos.

    Join my email list and I will send you a $2 discount code toward the purchase of an eBook.

    If you have any questions I am more than happy to help!

  12. SuperAdnan04, the reason we divided each asset on the balance sheet by total assets in a vertical analysis is because we want to get an idea of what percentage each asset is as a percentage of total assets. This process shows investors what assets make up portions of total assets. For example, if land is 80% of total assets, the company would likely have some difficulty paying ST debt (use current ratio for confirmation). We would want to do the same thing with liabilities and equity.

Leave a Reply

Your email address will not be published.