[et_pb_section fb_built=”1″ admin_label=”section” _builder_version=”4.16″ global_colors_info=”{}” theme_builder_area=”post_content” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on” da_disable_devices=”off|off|off”][et_pb_row admin_label=”row” _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||” theme_builder_area=”post_content”][et_pb_text _builder_version=”4.22.2″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n
You can analyze financial statements using multiple methods, including horizontal and vertical analysis. Horizontal analysis studies changes to variables over time, using historical data to predict future trends. Vertical analysis, however, studies the proportions of the total amount represented by the different variables during a single period.<\/p>\n
In this article, you will learn about the vertical analysis of financial statements and how to incorporate it into your company\u2019s accounting practices. You will also learn how to carry out vertical analysis using both an income statement and a balance sheet.<\/p>\n
[\/et_pb_text][et_pb_text module_id=”what-is-a-vertical-analysis” _builder_version=”4.22.2″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n
While horizontal analysis is concerned with variable change over time, vertical analysis focuses on the proportion each item represents for the whole amount in a single period. Hence why it\u2019s called vertical analysis – you add your calculations vertically next to each item. Since these proportions are expressed as percentages, you can easily compare them to other time periods or other companies.<\/p>\n
Vertical analysis is not concerned with changes over time, but you can use the results for that purpose. By doing a horizontal analysis of these results, you can study changes to each item\u2019s contribution to the total over multiple periods. This could help identify significant patterns or trends. To learn more, check out our articles on horizontal analysis<\/a> and trend analysis<\/a>.<\/p>\n [\/et_pb_text][et_pb_text module_id=”vertical-analysis-formula” _builder_version=”4.22.2″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n The vertical analysis of financial statements is concerned with the proportion of the total amount that each line item represents. This is calculated by dividing the value for each line item by the total and multiplying by 100.<\/p>\n % of total = (line item value \/ total value) * 100<\/p><\/blockquote>\n For example, on an income statement, the value of each revenue stream is a separate line item, which contributes to the total revenue.<\/p>\n % of total revenue = (sales revenue \/ total revenue) * 100<\/p><\/blockquote>\n Doing a vertical analysis for multiple periods allows you to use the results for a detailed horizontal analysis, so you can look for potential patterns or trends in the way different line items contribute to the total.<\/p>\n [\/et_pb_text][et_pb_text module_id=”how-to-perform-vertical-analysis” _builder_version=”4.22.2″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n The vertical analysis of financial statements is a straightforward process regarding the calculations required. This allows you to set up a simple template in a spreadsheet quickly, so you can focus on the other steps. In the next section, I will apply these steps to two different examples: the first with an income statement and the second with a balance sheet.<\/p>\n First, decide which period you want to analyze. You can analyze multiple periods separately, then do a horizontal analysis to look for trends. If you already use templates for your financial statements, it\u2019s easy to include the formulas for vertical analysis by adding columns or a new section.<\/p>\n Once you know what time period to focus on, you need to choose the documents and values you want to analyze. For example, you could choose to study the contribution of each revenue stream to the total amount of revenue using the information from the income statement.<\/p>\n In addition to the data for your company, collect the same data for similar companies in your industry. You can calculate the proportion of each line item from the total based on publicly available financial data.<\/p>\n Since you have all the data you need, it\u2019s time to calculate the % of the corresponding total for each line item, both for your data and that of your competitors. For each line item, use the following formula:<\/p>\n Percentage of total = (line item value \/ total value) * 100<\/p><\/blockquote>\n Now, it\u2019s time for the most important step – analyzing and interpreting the results for the period. The interpretation of these results is likely to be more accurate if you can compare them to previous results, as well as those of your competitors.<\/p>\n [\/et_pb_text][et_pb_text module_id=”vertical-analysis-examples” _builder_version=”4.22.2″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n Tools like Google Sheets or Excel allow you to automate calculations, so you can focus on analysis. With Sheetgo’s AI automations<\/a>, you can also connect the spreadsheets that hold your financial statements, so the data updates on its own and your reports use the latest numbers.<\/p>\n The following examples demonstrate how to do a vertical analysis using these free balance sheet template<\/a> and income statement template<\/a>. The calculations are performed in Google Sheets, but you can easily do the same in Excel.<\/p>\n [\/et_pb_text][et_pb_text module_id=”vertical-analysis-for-income-statements” _builder_version=”4.22.2″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n In this first example, I will do a vertical analysis of Company A\u2019s revenue based on its annual income statement.<\/p>\n For this example, I will carry out the analysis of the data reported for 2021. However, you can do this very quickly for multiple years, particularly if you\u2019re using an income statement template.<\/p>\n I can find the data I want to analyze for 2021 at the top of the income statement: \u2018Revenue\u2019.<\/p>\n [\/et_pb_text][et_pb_image src=”https:\/\/static.sheetgo.com\/wp-content\/uploads\/2026\/11\/vertical-analysis-income-statement-data.webp” alt=”Vertical analysis \u2014 Google Sheets income statement with 2021 sales, service, and returns revenue and total net revenue” title_text=”Google Sheets income statement with 2021 sales, service, and returns revenue and total net revenue” align=”center” _builder_version=”4.22.2″ _module_preset=”default” width=”100%” global_colors_info=”{}” theme_builder_area=”post_content”][\/et_pb_image][et_pb_text _builder_version=”4.22.2″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n Insert a column to the right of \u20182021\u2019 and click on the cell corresponding to the first line item.<\/p>\n [\/et_pb_text][et_pb_image src=”https:\/\/static.sheetgo.com\/wp-content\/uploads\/2026\/11\/vertical-analysis-income-statement-percent-column.webp” alt=”Vertical analysis of an income statement \u2014 new % of Total column added next to the 2021 revenue” title_text=”New % of Total column added next to the 2021 revenue” align=”center” _builder_version=”4.22.2″ _module_preset=”default” width=”100%” global_colors_info=”{}” theme_builder_area=”post_content”][\/et_pb_image][et_pb_text _builder_version=”4.22.2″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n Type in the equal sign, open parenthesis, and select the value for the first line item to add the cell reference. Add a “\/” to divide, and click on the value for the total to add the cell reference. Close the parenthesis and multiply by 100.<\/p>\n [\/et_pb_text][et_pb_image src=”https:\/\/static.sheetgo.com\/wp-content\/uploads\/2026\/11\/vertical-analysis-formula-income-statement.webp” alt=”Vertical analysis formula \u2014 =(B3\/B6)*100 typed in the cell next to sales revenue” title_text=”=(B3\/B6)*100 typed in the cell next to sales revenue” align=”center” _builder_version=”4.22.2″ _module_preset=”default” width=”100%” global_colors_info=”{}” theme_builder_area=”post_content”][\/et_pb_image][et_pb_text _builder_version=”4.22.2″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n Since the total will be the same for all line items in this section, use absolute referencing ($) for the total. Drag down the cell with the formula to copy it to the other revenue line items.<\/p>\n [\/et_pb_text][et_pb_image src=”https:\/\/static.sheetgo.com\/wp-content\/uploads\/2026\/11\/vertical-analysis-income-statement-absolute-reference.webp” alt=”Vertical analysis formula \u2014 =(B3\/$B$6)*100 with an absolute reference to total net revenue” title_text=”=(B3\/$B$6)*100 with an absolute reference to total net revenue” align=”center” _builder_version=”4.22.2″ _module_preset=”default” width=”100%” global_colors_info=”{}” theme_builder_area=”post_content”][\/et_pb_image][et_pb_text _builder_version=”4.22.2″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n Now that I have performed the required calculations on Company A\u2019s data, I need to do the same for companies in the same industry that are similar to Company A. This will allow me to analyze and compare results in context, increasing the likelihood of an accurate interpretation.<\/p>\n [\/et_pb_text][et_pb_image src=”https:\/\/static.sheetgo.com\/wp-content\/uploads\/2026\/11\/vertical-analysis-income-statement-results.webp” alt=”Vertical analysis of an income statement \u2014 revenue lines at 81.53, 13.14, and 5.33 percent of total” title_text=”Revenue lines at 81.53, 13.14, and 5.33 percent of total” align=”center” _builder_version=”4.22.2″ _module_preset=”default” width=”100%” global_colors_info=”{}” theme_builder_area=”post_content”][\/et_pb_image][et_pb_text module_id=”vertical-analysis-for-balance-sheets” _builder_version=”4.22.2″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n In this second example, I will be doing a vertical analysis of Company B\u2019s current assets based on its annual balance sheet.<\/p>\n For this example, the analysis will be carried out on the data reported for 2021. However, you can do this quickly for multiple years, particularly if you use a balance sheet template.<\/p>\n I can find the data I want to analyze for 2021 at the top of the balance sheet: \u2018Current Assets\u2019.<\/p>\n [\/et_pb_text][et_pb_image src=”https:\/\/static.sheetgo.com\/wp-content\/uploads\/2026\/11\/vertical-analysis-balance-sheet-data.webp” alt=”Vertical analysis of a balance sheet \u2014 2021 current assets adding up to $1,085,500 in total” title_text=”2021 current assets adding up to $1,085,500 in total” align=”center” _builder_version=”4.22.2″ _module_preset=”default” width=”100%” global_colors_info=”{}” theme_builder_area=”post_content”][\/et_pb_image][et_pb_text _builder_version=”4.22.2″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n Insert a column to the right of \u20182021\u2019 and click on the cell corresponding to the first line item.<\/p>\n [\/et_pb_text][et_pb_image src=”https:\/\/static.sheetgo.com\/wp-content\/uploads\/2026\/11\/vertical-analysis-balance-sheet-percent-column.webp” alt=”Vertical analysis of a balance sheet \u2014 empty % of Total column next to the cash line” title_text=”Empty % of Total column next to the cash line” align=”center” _builder_version=”4.22.2″ _module_preset=”default” width=”100%” global_colors_info=”{}” theme_builder_area=”post_content”][\/et_pb_image][et_pb_text _builder_version=”4.22.2″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n Type in the equal sign, open parenthesis, and select the value for the first line item to add the cell reference. Add a “\/” to divide, and click on the value for the total to add the cell reference. Close the parenthesis and multiply by 100.<\/p>\n [\/et_pb_text][et_pb_image src=”https:\/\/static.sheetgo.com\/wp-content\/uploads\/2026\/11\/vertical-analysis-formula-balance-sheet.webp” alt=”Vertical analysis formula \u2014 =(B4\/B10)*100 typed in the cell next to cash” title_text=”=(B4\/B10)*100 typed in the cell next to cash” align=”center” _builder_version=”4.22.2″ _module_preset=”default” width=”100%” global_colors_info=”{}” theme_builder_area=”post_content”][\/et_pb_image][et_pb_text _builder_version=”4.22.2″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n Since the total will be the same for all line items in this section, use absolute referencing ($) for the total. Drag down the cell with the formula to copy it to the other current asset line items.<\/p>\n [\/et_pb_text][et_pb_image src=”https:\/\/static.sheetgo.com\/wp-content\/uploads\/2026\/11\/vertical-analysis-balance-sheet-absolute-reference.webp” alt=”Vertical analysis formula \u2014 =(B4\/$B$10)*100 locking the total current assets cell” title_text=”=(B4\/$B$10)*100 locking the total current assets cell” align=”center” _builder_version=”4.22.2″ _module_preset=”default” width=”100%” global_colors_info=”{}” theme_builder_area=”post_content”][\/et_pb_image][et_pb_text _builder_version=”4.22.2″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n Now that I have performed the required calculations on Company B’s data, I need to do the same for companies in the same industry that are similar to Company B. This will allow me to analyze and compare results in context, increasing the likelihood of an accurate interpretation.<\/p>\n [\/et_pb_text][et_pb_image src=”https:\/\/static.sheetgo.com\/wp-content\/uploads\/2026\/11\/vertical-analysis-balance-sheet-results.webp” alt=”Vertical analysis of a balance sheet \u2014 each current asset as a percent of total, accounts receivable at 41.50″ title_text=”Each current asset as a percent of total, accounts receivable at 41.50″ align=”center” _builder_version=”4.22.2″ _module_preset=”default” width=”100%” global_colors_info=”{}” theme_builder_area=”post_content”][\/et_pb_image][et_pb_text module_id=”conclusion” _builder_version=”4.22.2″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n The vertical analysis of financial statements can be done more comfortably using spreadsheet software like Excel or Google Sheets. To keep those calculations current, Sheetgo’s AI finance virtual employee<\/a> can pull the latest figures from your statements into one file and share the results with your team.<\/p>\n You now know about the vertical analysis of financial statements and how it differs from the horizontal analysis. You know how to do a vertical analysis with Excel and Google Sheets, using both an income statement and a balance sheet.<\/p>\n To learn more about different types of financial analysis, check out these articles:<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":" A an\u00e1lise vertical mostra cada item como percentual de um total. Aprenda a f\u00f3rmula e como aplic\u00e1-la a uma DRE e a um balan\u00e7o patrimonial.<\/p>","protected":false},"author":2,"featured_media":266533,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[36],"tags":[],"class_list":["post-266522","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance-processes"],"acf":[],"permalink_manager":null,"_links":{"self":[{"href":"https:\/\/www.sheetgo.com\/pt\/wp-json\/wp\/v2\/posts\/266522","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sheetgo.com\/pt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sheetgo.com\/pt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sheetgo.com\/pt\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sheetgo.com\/pt\/wp-json\/wp\/v2\/comments?post=266522"}],"version-history":[{"count":1,"href":"https:\/\/www.sheetgo.com\/pt\/wp-json\/wp\/v2\/posts\/266522\/revisions"}],"predecessor-version":[{"id":266534,"href":"https:\/\/www.sheetgo.com\/pt\/wp-json\/wp\/v2\/posts\/266522\/revisions\/266534"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sheetgo.com\/pt\/wp-json\/wp\/v2\/media\/266533"}],"wp:attachment":[{"href":"https:\/\/www.sheetgo.com\/pt\/wp-json\/wp\/v2\/media?parent=266522"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sheetgo.com\/pt\/wp-json\/wp\/v2\/categories?post=266522"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sheetgo.com\/pt\/wp-json\/wp\/v2\/tags?post=266522"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Vertical analysis formula<\/h2>\n
How to perform vertical analysis?<\/h2>\n
1. Select the time period<\/h3>\n
2. Gather data<\/h3>\n
3. Calculate line items as % of total<\/h3>\n
4. Analyze & compare results<\/h3>\n
Vertical analysis examples<\/h2>\n
Vertical analysis for income statements<\/h2>\n
1. Select the time period<\/h3>\n
2. Gather data<\/h3>\n
3. Calculate line items as a percentage of total<\/h3>\n
4. Analyze & compare results<\/h3>\n
Vertical analysis for balance sheets<\/h2>\n
1. Select time period<\/h3>\n
2. Gather data<\/h3>\n
3. Calculate line items as % of total<\/h3>\n
4. Analyze & compare results<\/h3>\n
Conclusion<\/h2>\n
\n