Vertical Analysis Calculator

Calculate Vertical Analysis (VA)



Formula

The formula to calculate the vertical analysis (VA) is:

\[ \text{VA} = \left( \frac{\text{SL}}{\text{B}} \right) \times 100 \]

Where:

What is Vertical Analysis?

Vertical analysis is the process of looking at financial statement lines when compared to a base figure or amount. It helps in understanding the relative proportions of various items in a financial statement, making it easier to compare financial performance over different periods or between different companies.

Example Calculation 1

Let's assume the following values:

Using the formula:

\[ \text{VA} = \left( \frac{50,000}{200,000} \right) \times 100 = 25 \]

The Vertical Analysis is 25%.

Example Calculation 2

Let's assume the following values:

Using the formula:

\[ \text{VA} = \left( \frac{30,000}{150,000} \right) \times 100 = 20 \]

The Vertical Analysis is 20%.