# Horizontal and Vertical Analysis Excel – Balance Sheet spreadsheet example On this balance sheet spreadsheet, you’ll see the horizontal and vertical analysis excel model.
You’ll be able to compare the evolution of financial statements between different years of the current and noncurrent assets and liabilities.
Make company performance appraisal easy using this free spreadsheet example. Understand below what a horizontal and vertical analysis is.

## Horizontal Analysis (HA):

It evaluates the evolution of balance sheet or income statement elements. Monthly, quarterly, or yearly comparative evolution are the most common in this analysis. ## Understand the calculation of the horizontal analysis in the balance sheet:

1 EXAMPLE:
Available Cash Year 1: \$ 5,000
Available Cash Year 2: \$ 5,000
The amount shown in the horizontal analysis will be of 100%, since ”Year 2” \$ 5,000 of cash corresponds to 100% of the cash in ”Year 1”.

2 EXAMPLE:
Available Cash Year 1: \$ 5,000
Available Cash Year 2: \$ 10,000
The amount shown in the horizontal analysis will be of 200%, since ”Year 2” \$ 10,000 of cash corresponds to 200% of the cash in ”Year 1”.

## Vertical Analysis (VA)

Just as horizontal analysis, it is applied to the balance sheet or income statement. Unlike horizontal analysis, which compares evolution between different years, vertical analysis compares how much an account holds towards the total group of accounts to which it belongs.

## Understand the calculation of the vertical analysis in the balance sheet:

EXAMPLE:
Current Asset Year 1: \$ 100,000
Total of the Asset Year 1: \$ 300,000
The amount shown in the vertical analysis will be of 33% since the \$ 100,000 current asset corresponds to 33% of the total asset of \$ 300,000 in the same period.

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