Horizontal Analysis

Comparing two year’s financial statements to search for increases and decreases in line items.

Using the earlier year as a base, every item on the income statement and/or balance sheet is compared with the same item on last year’s financial statement. Horizontal Analysis looks at the dollar amount of the increase or decrease and at the percentage of the increase or decrease.

https://accounting.uworld.com/cpa-review/lc/accounting-dictionary/term/horizontal-analysis/