Horizontal Analysis
Understand financial changes across reporting periods.
Financial Statement Comparison
Absolute Change = Current Year Value − Previous Year Value
Percentage Change = (Absolute Change ÷ Previous Year Value) × 100
Absolute Change Analysis
Absolute Change = Current Year − Previous Year
Example: ₹1,250 Cr − ₹1,050 Cr = ₹200 Cr
Percentage Change Analysis
Change % = (Current Year − Previous Year) ÷ Previous Year × 100
Example: (₹200 Cr ÷ ₹1,050 Cr) × 100 = 19.05%
Financial Trend Analysis
Trend Analysis = Compare financial figures across multiple reporting periods.
Growth Rate = (Current Year − Previous Year) ÷ Previous Year × 100
Contribution Analysis
Contribution % = Individual Component Increase ÷ Total Increase × 100
Example: ₹120 Cr ÷ ₹200 Cr × 100 = 60%
Horizontal Analysis Summary
Horizontal Analysis compares financial statement items across different years to understand their absolute and percentage changes.
Expense increases should be evaluated alongside revenue growth, margins and business activity.