Vertical analysis $is$ a tool $to$ evaluate individual financial statement items $or$ a group $of$ items. When analyzing income statement accounts, the base $is$ usually $(revenu\frac{e}{e}$xpense$\frac{s}{n}et$ income$)$ and for balance sheet accounts, the base $is$ usually total $(asset\frac{s}{l}$iabilitie$\frac{s}{e}$quity$).$