Arealtor12345 said:
I have 4 years of annual figures that I need to show a Vertical Growth
Percentage for...I am STUCK on the formula to use!
[....]
The resulting Vertical Growth should be 17.26%
How did they come up with this percentage using a formula?
Others have answered your question, namely: =(666,971.40 / 568,808.24) - 1
formatted as Percentage.
However, that is __not__ "vertical growth analysis", at least according to
http://accounting-financial-tax.com/2009/10/horizontal-vs-vertical-analysis-of-financial-statements
and
http://books.google.com/books?id=_o...ook_result&ct=result&resnum=5&ved=0CBYQ6AEwBA .
The difference between horizontal and vertical analysis is: horizontal
analysis compares actual figures (e.g. dollar amounts), whereas vertical
analysis compares percentages (relative sizes).
What you are doing is an example of horizontal analysis. An example
vertical analysis might be.... The percentage of new home sales to total
sales is 20%, 30%, 40% and 50% in the years 2001 through 2004. How has the
percentage of new home sales changed from 2001 to 2004?
I don't know if you are simply using the wrong term for what you need to do,
or if you are doing the wrong thing for the type of analysis that you need
to do.
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