What is the best type of financial analysis?
Asked 4 years ago
I tried to look up how to do a financial analysis, and so many different types came up. Consequently, I hit a blank. Which kind of analysis do you recommend I do? Thank you!
Demarcus Reynolds
Wednesday, February 16, 2022
There are 9 most common financial analyses, each of them being of different purposes. There is vertical analysis, horizontal, leverage, growth, profitability, liquidity, efficiency, cash flow, and rates of return.
A vertical analysis is used to compare the margin of your business to other businesses. While a horizontal analysis is comparing financial data of your company for several years and determining if the business is growing. A liquidity analysis shows whether a company can meet its short-term obligations.
Please follow our Community Guidelines
Related Articles

6 Steps to Build a Successful Hybrid Ecommerce Marketing Campaign
Juni - Financial platform
August 25, 2022

Micro vs. Macro Conversions: Formula, Examples, & Use Cases
Ashley Stander
October 11, 2022

Perpetual vs Periodic Inventory Systems: Which Is Best for Your E-commerce Business?
Adeel Qayum
March 30, 2023
Related Posts
Staff Writer
Best Sales Report Plugins for WooCommerce
Rebekah Brace
The Best Apps for Shopify Cohort Analysis
Can't find what you're looking for?