what techniques are used in conducting financial analysis 
analysts can use vertical analysis to compare each component of a financial statement as a percentage of a baseline such as each component as a percentage of total sales alternatively analysts can perform horizontal analysis by comparing one baseline year s financial results to other years many financial analysis techniques involve analyzing growth rates including regression analysis year over year growth top down analysis such as market share percentage or bottom up analysis such as revenue driver analysis lastly financial analysis often entails the use of financial metrics and ratios these techniques include quotients relating to the liquidity solvency profitability or efficiency turnover of resources of a company 