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A procedure in fundamental analysis in which an analyst compares ratios or line items in a company's financial statements over a certain period

of time. The analyst will use his or her discretion when choosing a particular timeline; however, the decision is often based on the investing time horizon under consideration.

Investopedia explains 'Horizontal Analysis'


For example, when you hear someone saying that revenues increased by 10% this past quarter, that person is using horizontal analysis. Horizontal analysis can be used on any item in a company's financials (from revenues to earnings per share), and is useful when comparing the performance of various companies.
Five Chart Patterns you need to know

Related Definitions
1. Net Income - NI 2. Revenue 3. Cash Flow Statement

4. Condensed Financials 5. Balance Sheet 6. Earnings Per Share - EPS 7. Income Statement 8. Fundamental Analysis 9. StockCharts Technical Rank (SCTR) 10.Net Present Value - NPV

Articles Of Interest
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What Are A Stock's "Fundamentals"?


The investing world loves to talk about fundamentals, but do you know what it means?

2.

Breaking Down The Balance Sheet


Knowing what the company's financial statements mean will help you to analyze your investments.

3.

Ratio Analysis Tutorial


If you don't know how to evaluate a company's present performance and its possible future performance, you need to learn how to analyze ratios.

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For Individual Investors, These May Be The Best Of Times


The raging debate on high frequency trading may lead the average retail investor to think that he/she continues to get a raw deal in the stock market. The reality is that these are probably the ...

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The Most Accurate Way To Gauge Returns: The Compound Annual Growth Rate
The compound annual growth rate, or CAGR for short, represents one of the most accurate ways to calculate and determine returns for individual assets, investment portfolios and anything that ...

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Inventory: FIFO, LIFO


Whether a company chooses FIFO or LIFO has important implications for the bottom line and for tax liability.

7.

Market Summary For February 21, 2014


Summary of the major U.S. indices for the week ended February 21, 2014.

8.

The 4 R's Of Investing In Retail


In retail, successfully managing return on investment (ROI) and other financial indicators is the key to a healthy business.

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EDGAR: Investors' One-Stop-Shop For Company Filings


You can learn a lot about any listed company through this system - if you know how to use it.

10.

The Debt-Service Coverage Ratio (DSCR)


The Debt-Service Coverage Ratio (DSCR) is a simple way to analyze whether a company can adequately manage its borrowing costs. The ratio helps banks evaluate the credit worthiness of an organizat

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