The percent of fixed assets to total assets is an example of: profitability analysis vertical analysis solvency analysis horizontal analysis

Question

The percent of fixed assets to total assets is an example of:  profitability analysis  vertical analysis  solvency analysis  horizontal analysis

Anu Bhardwaj · Accepted Answer

vertical analysis

In vertical analysis, financial statement items are expressed as a percentage of a base amount (e.g., fixed assets as a % of total assets, or cost of sales as a % of net sales).

Profitability analysis → measures income relative to sales, assets, or equity.
Solvency analysis → measures ability to meet long-term obligations.
Horizontal analysis → compares financial data across periods (trend analysis).

Accounting

Accounting

Anu Bhardwaj

Answer

Extracted Transcript from Images