This video really helped me to better understand the value of vertical and horizontal analysis. I especially appreciated the contextual explanation regarding the two restaurants. Thank you for posting it.
I was struggling to understand vertical analysis before watching this video. After watching I was able to answer my accounting homework questions with ease. Thank you!
I am just studying for my accounting final for college and this was a super helpful break down. Very clear and understanding and using a real life example helped in the end! First time watching your videos, wish I could have found them sooner. THANK YOU! :)
Thank you so much for making this video available. You helped me better understand the significance of the horizontal analysis of both the income statement and the balance sheet. Very helpful.
so helpful and easy to understand how this method or tool is used in accounting to be able to understand the differences of why the percentage expression is used in the financial statements to analyze data information and avoid fluctuation in larger companies.
Brilliant. Excellent presentation. If you were to lose the necktie and wear a Five-Finger-Death-Punch tee shirt, you would be a rock star in your own right. Thank you for your help. Heroic.
I have a question. The example at the end, you related the increase in the COGS to factors that were related to stealing or giving away the drinks without charging, both scenarios were related to unethical behavior. Are there additional options that can increase COGS percentage that can relate to other things besides these types of behavior, such as too high of supplier costs, or something similar. If you can give a very brief example, that would be wonderful.
I HOPE SOMEONE CAN ANSWER THIS FOR ME. IM LOOKING AT A BALANCE SHEET WITH NO TOTAL ASSETS ON IT. IT ONLY HAS CURRENT ASSETS. IT ALSO HAS LONG TERM LIABILITIES AS WELL AS CURRENT. WHEN DOING THE EQUITY + LIABILITIES FORMULA, DO I ADD THE LONG-TERM LIABILITIES, CURRENT LIABILITIES, OR BOTH TO EQUITY? THANKS!
The reasoning you provided for why CoGs was greater in Crab House 2, is only valid for a periodic inventory system, is it not? A perpetual inventory system would allow for the detection of those issues, and it would NOT be included as part of CoGs.
If you are to do this for lets say 10 years. You no longer have just 2 years to compare. Do you always compare with prior year or do you compare with the year you first made the comparison with. So lets say you start making comparisons in 2000. Is every year compared with 2000 or do you always compare with the year prior?