when can horizontal analysis be used 
horizontal analysis is most useful when an entity has been established has strong record keeping capabilities and has traceable bits of historical information that can be dug into for more information as needed this type of analysis is more specific relevant for analyzing the value we maybe selling or acquiring the bottom linehorizontal analysis is a financial analysis technique used to evaluate a company s performance over time by comparing prior period financial results with more current financial results a company is better able to spot the direction of change in account balances and the magnitude in which that change has occurred 