Module 2 - Vertical Analysis

The process of evaluating businesses, projects, budgets, and other finance-related transactions to determine their performance and suitability.

• Finance

• Financial Management

• Financial Analysis

• Corporate Finance

It is not only reflective on profitability, but can also be seen in the liquidity, its solvency, and its efficiency.

• Finance

• Financial Management

• Financial Analysis

• Corporate Finance

Select the Areas of Analysis

• Liquidity

• Credit Rating

• Solvency

• Efficiency

• Profitability

These are organizations such as bus lines, taxi companies, theaters, tailors, dry cleaners, consultants, etc., do not sell merchandise, but offer their services.

• Service

• Manufacturing

• Wholesaling

• Retailing

• Services

They are much like retailers in that they are retailers of service to the consumer.

• Service

• Manufacturing

• Wholesaling

• Retailing

• Services

They are doing it from customer to customer.

• Service

• Manufacturing

• Wholesaling

• Retailing

• Services

Has large investment in property, plant, and equipment.

• Service

• Manufacturing

• Wholesaling

• Retailing

• Services

They would also have to engage in wholesaling either to direct wholesalers, or to their exclusive distributor, or arrangements for instance, contracts within companies

• Service

• Manufacturing

• Wholesaling

• Retailing

• Services

Payment is always allowed to take products on accounts.

• Service

• Manufacturing

• Wholesaling

• Retailing

• Services

Have large account receivables.

• Service

• Manufacturing

• Wholesaling

• Retailing

• Services