Horizontal Analysis of the Balance Sheet

In this video, we complete a horizontal analysis of a balance sheet and discuss how to interpret the results of that analysis.

[@sandracarpio3397]

Thank you for the simple way of explaining things. It made me understand a lot more of the horizontal process and can now complete the homework. Blessings to you and to those that find your video

[@allkristiningram]

+Sandra Carpio I'm so glad I was able to help! Thanks for your comment and blessings.

[@mimil5069]

Thank you for breaking down the analysis. You made it easier to understand compared to my textbook.

[@allkristiningram]

You're very welcome!

[@Iva_McGovern]

Thank you so much! You sound so calm explaining 😊easy and simple. 💖 many blessings!

[@allkristiningram]

You are so welcome

[@ricardofogel671]

Thank you very much for this breakdown. You made my textbook material much easier to understand.

[@allkristiningram]

+Ricardo Fogel Glad you found the video helpful! Thanks for commenting!

[@nayabbbt7998]

Your method of teaching is so good am so impressed 👍😊

[@allkristiningram]

Thank you! 😃Glad to hear that!

[@Tiffany_Channell]

I'm a new viewer that found your video. I currently have a four part project due next week, where presenting a horizontal analysis on Power Point is the final part. Thank you for making me feel like I can do this!!

[@allkristiningram]

Best of luck!

[@estefanynerio5855]

This video was so helpful and easy to understand, thank you so much!

[@allkristiningram]

You're welcome. So glad I could help!

[@nkurunzizasumayire]

Thank you so much! My question is how about more than 2 years, say 3,4 e.t.c?

[@ismailismaili0071]

this is really good this is my first time i know how to calculate the % change hhhhh thank you Ms. Kristin ( teacher)

[@rodesacabrillas480]

0:24 What do mean "going across two years"?

[@allkristiningram]

As opposed to working vertically down one year worth of information.

[@dianahidalgo7100]

at 6:09 did you mean current assets? Also this really helped me in understanding the reason why wee need this and what it tells us. This will definitely help in my presentation thank you!

[@allkristiningram]

We use it in evaluating the company performance.

[@ysaisachija7801]

Ma'am, I have a question, is the formula for the balance sheet the same with income statement on horizontal analysis?

[@allkristiningram]

yes

[@lizmenchaca8659]

Extremely helpful! Thank you very much!

[@allkristiningram]

You're welcome!

[@vibevree4943]

_thank you so much!_ ^_^ i understand it very well

[@allkristiningram]

Glad it helped!

[@christianjayinson2364]

I have a question what to do if The balance of the prior year is not given How to get the prior year if the given is only the current year from two companies

[@allkristiningram]

Then you can't do a horizontal analysis. You can only do a vertical.

[@ibisonwachukwu7574]

excellent job. well explained. very interactive. thank you!! Please when interpreting the scenario, do you come up with possible scenarios to explain the shift of figures or you just explain that, "this has gone up and this has gone down". For instance, would you say: "cOMPANY A lost revenue because of the market collapse" or you just say "the revenue has gone down, cost of goods has gone up"?? Awaiting your response please. Thank you

[@allkristiningram]

+Ibiso Nwachukwu The first step is to determine what has increased and decreased but the ultimate goal is to determine why these changes occurred. Those are not usually evident from the horizontal analysis and would require additional information.

[@uddavshejwal4867]

Can you also post for coverage of interest and principle payments and coverage of all fixed assets through income statement

[@allkristiningram]

Fixed assets and principal payments do not go on the income statement.

[@shondalathomas3133]

Thank you. Very helpful!

[@allkristiningram]

+Shondala Thomas Glad you found the video helpful! Thanks for commenting!

[@bridgette435]

I want to get more in contact with you because it really helps alot. thank you

[@allkristiningram]

You're welcome! You can also check out my website, Accountinginfocus.com for more content.

[@yayabathily6077]

Thanks for the post

[@allkristiningram]

yaya bathily You're welcome! I'm so glad you continue to find my content helpful!

[@yayabathily6077]

yup. Very helpful thnx again.

[@ishanjolly2532]

Thanks for this video

[@allkristiningram]

Ishan Jolly You're welcome. Thanks for leaving a comment!

[@locked2550]

Thank you!!!!

[@allkristiningram]

You're welcome!

[@maanal-balushi6065]

Thank you

[@allkristiningram]

You're welcome!

[@LiLi-wh7ot]

thank you

[@allkristiningram]

You're welcome!

[@zarsangahkhan2873]

PPandE , Net we minus 8,000,000-10,000,000 = (2,000,000) why you right this amount with + while this answer in minus why you not right in -?

[@allkristiningram]

Because you do not need the minus.

[@Alive79311]

I love you

[@allkristiningram]

Thanks!