Horizontal Analysis

Horizontal analysis is a financial review method that compares financial statement figures over multiple periods to identify trends and changes. By examining year-over-year or period-over-period data, it highlights growth, decline, or stability in items like revenue, expenses, or profits. This helps stakeholders understand how a company's financial performance is evolving over time, making it easier to spot patterns, assess progress, and make informed decisions. Essentially, it provides a snapshot of financial progress by contextualizing current figures within historical data.