Static Analysis: (Also Called as Vertical Analysis):
Study of quantitative relationship of the various items in the financial statement on a particular date. For example, the ratios of different items of costs for a particular period may be calculated with the sales for that period. Such an analysis is useful in comparing the performance of several companies in the same group, or divisions or departments in the same company. Since this analysis depends on the data for one period, this is not very conducive to proper analysis of the company’s financial position. E.g. Comparative statements
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