what is the difference between horizontal analysis and vertical analysis 
horizontal analysis also known as trend analysis compares historical data on a financial statement over different accounting periods there is a baseline period and numbers from succeeding periods are calculated as a percentage of the base period vertical analysis looks at numbers in financial statements in the same period and calculates each line item as a percentage of the base figure in that section horizontal analysis indicates long term trends and highlights areas of strength and those that need improvement vertical analysis indicates the relative importance of each line item in a certain period 