http://netvouz.com/lespet/tag/illustration?feed=rss lespet's bookmarks tagged "illustration" on Netvouz http://www.financialmodelingguide.com/analytical-tools/analytical-tools-in-financial-modeling-horizontal-analysis/ Horizontal analysis helps identify abnormal changes over time, look at the illustration below. Also known as Trends Statements, horizontal analysis may be performed in a financial model by means of: Long-term trends - growth rate for a 10 year period Year-to-year changes - indexed or percent changes Geometric growth rates - compound annual growth rates (CAGR) Horizontal analysis, whilst simple to execute and useful to a certain extent, has its limitations. These limitations include: Being highly dependent on the selection of base year and the period under examination in the financial model. Horizontal analysis provides little insight into why the trend occurred in a financial model. Horizontal analysis does ... lespet Mon, 07 Apr 2008 09:05:35 GMT