A vertical analysis is used to show the relative sizes of the different accounts on a financial statement. For example, when a vertical analysis is done on an income statement, it will show the top line sales number as 100%, and every other account will show as a percentage of the total sales number.

It has many names, often related to particular meanings: Sheffer stroke (in logic), pipe, vbar, stick, vertical line, vertical slash, bar, pike, or verti-bar, and several variants on these names. It is occasionally considered an allograph of broken bar (see below).

A vertical line is one the goes straight up and down, parallel to the y-axis of the coordinate plane. All points on the line will have the same x-coordinate. A vertical line has no slope. Or put another way, for a vertical line the slope is undefined.

A vertical line is any line parallel to the vertical direction. A horizontal line is any line normal to a vertical line. Vertical lines do not cross each other.

The terms vertical and horizontal often describe directions: a vertical line goes up and down, and a horizontal line goes across. You can remember which direction is vertical by the letter, “v,” which points down.

Vertical analysis is the proportional analysis of a financial statement, where each line item on a financial statement is listed as a percentage of another item. Vertical analysis is also useful for trend analysis, to see relative changes in accounts over time, such as on a comparative basis over a five-year period.

Definition: Vertical analysis, also called common-size analysis, is a financial analysis tool that lists each line item on the financial statements as a percentage of its total category.

Vertical analysis is a kind of financial statement analysis wherein each item in the financial statement is shown in the percentage of the base figure. It is one of the popular methods of financial statements used as it is simple and also called a common size analysis.

Vertical analysis is a method of analyzing financial statements that list each line item as a percentage of a base figure within the statement. The first line of the statement always shows the base figure at 100%, with each following line item representing a percentage of the whole.

Common size analysis, also referred as vertical analysis, is a tool that financial managers use to analyze financial statements. In the balance sheet, the common base item to which other line items are expressed is total assets, while in the income statement, it is total revenues.

Advantages and Disadvantages of Vertical Analysis Vertical analysis only requires financial statements for a single reporting period. It is useful for inter-firm or inter-departmental comparisons of performance as one can see relative proportions of account balances, no matter the size of the business or department.

It does not help take a firm decision owing to a lack of standard percentage or ratio regarding the components in the balance sheet and income statement. Such an analysis does not vigilantly follow accounting concepts and conventions. It does not help in measuring the liquidity.

Examples of internal users are owners, managers, and employees. External users are people outside the business entity (organization) who use accounting information. Examples of external users are suppliers, banks, customers, investors, potential investors, and tax authorities.

The Buffett Indicator is the proportion of total stock market capitalization to the Gross Domestic Product (GDP) of a nation (Jones, 2016). It is a signal for when investors should buy or sell stocks. Total stock market capitalization measures the price of stocks in the market.

Ordinate

The number plane, or Cartesian plane, is divided into four quadrants by two perpendicular lines called the x-axis, a horizontal line, and the y-axis, a vertical line. These axes intersect at a point called the origin.

The X coordinate is the distance of the X intercept from the origin and the Y coordinate is the distance of the Y intercept from the origin. If the intercept is on the positive axis, the value of the coordinate is positive and if the intercept is on the negative coordinate, the value of the coordinate is negative.

vertical axis | Business English the line of figures that are arranged from top to bottom at the side of a graph, usually expressing a number or amount: The vertical axis estimates the internet purchases of customers in the London area. See also. y-axis.

The x-axis and y-axis are two lines that create the coordinate plane. The x-axis is a horizontal line and the y-axis is a vertical line. Those indicate the lines go on forever.

Multiplanar or triaxial joints rotate in all three axes allowing movement in all three planes. The shoulder joint is an example of a multiplanar/triaxial joint.

When one closes the mouth, the movement is called. Extension and Flexion.

Circumduction is the orderly combination of shoulder movements so that the hand traces a circle and the arm traces a cone. In order it is produced by shoulder flexion, abduction, extension and abduction (or the reverse).

The frontal axis passes horizontally from left to right and is formed by the intersection of the frontal and transverse planes. The vertical axis passes vertically from inferior to superior and is formed by the intersection of the sagital and frontal planes.

Anatomical Planes of the Body

Directional Terms Inferior or caudal – away from the head; lower (example, the foot is part of the inferior extremity). Anterior or ventral – front (example, the kneecap is located on the anterior side of the leg). Posterior or dorsal – back (example, the shoulder blades are located on the posterior side of the body).

Up, Down, Side-to-Side: Directional Terms

Directional terms allow description of one body part in relation to another. Locating structures in your body is one of the main components of anatomy. Learn all terms used to describe location in the human body.

Directional Terms These terms are essential for describing the relative locations of different body structures. For instance, an anatomist might describe one band of tissue as “inferior to” another or a physician might describe a tumor as “superficial to” a deeper body structure.