Vertical analysis of the balance sheet - an example , features vertical analysis , vertical analysis of the balance and the difficulty of drawing conclusions from the balance

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Vertical analysis of balance - an important way to diagnose profitability.Perfect for comparing the performance of one organization to another, even if they vary in their specifics.However, not everyone can make it competently.Readers will be able to understand how it is done, by analogy.Vertical analysis of the balance sheet, an example of which we propose in this article is easy to understand and quite correct to imitate him.Just make sure that what we do, and substitute their figures.

Vertical analysis of the balance is carried out in the two tables.First, draw a single and arrange her hat.Thus, in Table 1, column 4 is: 1 - a - it will be focused titles of the articles, and the remaining 3 - smaller - they are only numbers.Rows in the table should be 1 line 39 column 1 - a balance sheet, the second has a name - "Current assets", concluded the third "Assets", the fourth - "Cash".In the fifth marked securities - the value of shares, etc.The sixth contains the accounts dept.The seventh record - "Notes receivable".The eighth line - a commodity (price) 9 - the cost of pre-payment, the tenth line is inserted - "Working capital, only" - and later in these lines of each column will incite the overall balance of the working capital.Then comes the line 10 - it assets.In the 11th line - buildings, equipment - the initial value "and other property companies, 12 line is called" amortization ", 13 -" Buildings and equipment - value at the moment. "14 line -" Investments ", 15 line called the" Trademarks ". In the 16 record - "Goodwill" and in the 17th place - "Total: fixed assets." Here again, you will incite the subtotals of fixed assets. Go to the 18th line: it we mark again the result of asset write: "Assets -all ".

now occupies liabilities - 19 line. In 20 write -" Short-term debt "in 21 put the debts on loans, and 22 - notes receivable. Twenty-Third line - is accrued liabilities. 24 lines - bankingloan. The 25 string Holds "Current portion of long-term debt" and 26 write - "tax arrears". Then tamp up to 27 bar - "Short-term debt of all." In the 28th line write "Debt long-term", and in 29- "Bonds payable."Go to line 30, write in it - "Long-term bank loan."And mark the 31 - "Income Taxes deferred."Then, in line 32 is only a record, "Total Long-term debt".And in the 33 so-fill "personal capital" to mark the 34 line: "12% of shares", and 35 line called "shares of smaller par value."36 line - "More sredsva company", 37 - "no profit distribution", 38 - "Total: Equity," and in line 39 - "The result in liabilities."Vertical analysis, an example of which we report, drawn up on the following items: 2, 3 and 4 column is called a period of time, which accounts for the data that you have found.So to 01.01.2005, then the second - 01.01.2006, and the third - 01.01.2007.And now each column write data for each year.Thereafter, the calculation in the summary line of assets, liabilities and equity.So you will easily be able to make vertical analysis of the balance sheet.However, the time it will take a lot, but it's worth it: the right conclusions drawn from the analysis help to eliminate problems of the company and increase profits.

second table - vertical analysis of the balance of the proceeds, only 21 lines and 4 columns.Row Labels - revenue, cost, expenses, wages, costs, depreciation, gross income, etc.Check out this table is easier than the first because most of the data you just rewrite of it.So with just two tables and three days of computing, you can ensure your enterprise during productive and profitable work.That's what significant vertical analysis of the balance sheet.