reply to post. agree or disagree?

The financial performance during a specific time frame and shows any fluctuations is a horizontal analysis. The financial performance time frame can be in quarters, months, or years. Income statements, retained earnings, and balance sheets are used in the horizontal analysis (Niogu, 2019). Long term planning is typically used in the horizontal analysis. The horizontal analysis is also commonly called or referred to as trend analysis (Niogu, 2019). Comparing financial items such as total liabilities and assets are used in the vertical analysis. Operating costs, income tax, and sales figures are used in the vertical analysis. The vertical analysis will show the entire organizations financial performance. Short term planning is typically used in the vertical analysis. Comparing one organization to another can be accomplished by viewing the account balances on the vertical analysis. The annual figures can be compared to the organizations performance and view if it is rising or falling. Two ratios are equal because they have the same relationship in proportions. Organizations can compare liquidity, activity, and profitability even though they are different in size. The ratios will show any weaknesss or strengths in an organization.