Vertical Analysis Calculator

Formula

The formula to calculate the vertical analysis (VA) is:

\[ \text{VA} = \left( \frac{\text{SL}}{\text{B}} \right) \times 100 \]

Where:

VA is the Vertical Analysis (%)
SL is the Statement Line Item (\$)
B is the Total Base Figure (\$)

What is Vertical Analysis?

Vertical analysis is the process of looking at financial statement lines when compared to a base figure or amount. It helps in understanding the relative proportions of various items in a financial statement, making it easier to compare financial performance over different periods or between different companies.

Example Calculation 1

Let's assume the following values:

Statement Line Item ($SL$) = \$50,000
Total Base Figure ($B$) = \$200,000

Using the formula:

\[ \text{VA} = \left( \frac{50,000}{200,000} \right) \times 100 = 25 \]

The Vertical Analysis is 25%.

Example Calculation 2

Let's assume the following values:

Statement Line Item ($SL$) = \$30,000
Total Base Figure ($B$) = \$150,000

Using the formula:

\[ \text{VA} = \left( \frac{30,000}{150,000} \right) \times 100 = 20 \]

The Vertical Analysis is 20%.