Your brief and concise discussion will include: Horizontal or trend analysis - Comparing the changes of any financial statement item over two or more years. Vertical or common-size analysis - Comparing income statement items as a % of sales, or balance sheet items as a % of total assets, and how these percentages have changed over the two most recent years. Understand and give examples. Ratio analysis - Discuss and provide examples of Profitability, Efficiency, Solvency, and Liquidity ratios In general, how is Financial Statement Analysis helpful to an entity or stakeholders