what are the pros and cons of vertical analysis 
one of the pros of vertical analysis is that it allows for the comparison of financial statements from one accounting period to the next as well as for comparisons among different companies one of its cons is that it doesn t take into consideration absolute numbers so if you are comparing two companies looking at percentages will give a different result than absolute numbers the bottom linevertical analysis looks at the contributing percentage of each line item to the total base figure it can provide information on what metrics are improving and which are worsening it can be used to compare different components of companies and the same company in different time periods 