#### Excel 2007

Horizontal and Vertical Analysis

The images were created while running Windows XP.

**Horizontal and Vertical Analysis**

This is a partial Balance Sheet containing the Current Assets for Southwest Airlines.

- All Borders used for A1:E8.
- B3:C8 has been formatted for currency, 2 decimals, and negative in red parentheses.
- D2 and E2 have Text Wrapping.

**Horizontal Analysis**

Horizontal Analysis compares an account over a period of time.

The formula has two parts, calculate the difference and divide by the previous year.

Horizontal Analysis Formula: =(Current Year - Previous Year)/Previous Year

Use parentheses to subtract first and then divide.

- Select D4.
- Enter the formula: =(B4-C4)/C4
- Press the ENTER key.
- The result will be displayed as a decimal. Select D4.
- Click the Percent Icon on the Home Ribbon.
- Fill Handle to D8.

**Vertical Analysis**

Vertical Analysis compares an account to the total, Cash to Total Current Assets, Net Receivables to Total Current Assets, etc.

Vertical Analysis Formula: =Account/Total

The total is made absolute so that when the formula is filled, the cell for the total remains constant.

- Select E4.
- Type the formula: =B4/B8 and press F4 to make B8 absolute
- =B4/$B$8
- Press ENTER.
- Select E4. Click the Percent Icon on the Home Ribbon (Numbers Group)
- Position the mouse on the Fill Handle. Click and drag to E7.
- Select E8.
- Double click the AutoSum Icon. Click the Percent Icon.

**Completed Worksheet and Cell Formulas**

- Hold down the CTRL key and press ~ to display the Cell Formulas.
- Press CTRL and ~ to return to the worksheet.

**Rename Worksheet Tab**

- Double click the worksheet tab.
- Type: Analysis
- Press ENTER.

##### Updated September 6, 2007