what are the different types of financial statement analysis 
most often analysts will use three main techniques for analyzing a company s financial statements first horizontal analysis involves comparing historical data usually the purpose of horizontal analysis is to detect growth trends across different time periods second vertical analysis compares items on a financial statement in relation to each other for instance an expense item could be expressed as a percentage of company sales finally ratio analysis a central part of fundamental equity analysis compares line item data price to earnings p e ratios earnings per share or dividend yield are examples of ratio analysis 