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Horizontal Analysis Formula Excel Template

The document provides an example of horizontal analysis using financial data from the annual reports of two companies, ASD Inc. and Apple Inc. It includes income statement data such as net sales, cost of goods sold, expenses, and net income for 2017 and 2018. The data is used to calculate absolute and percentage changes between the two years to analyze trends over time.

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sexy samuel
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266 views

Horizontal Analysis Formula Excel Template

The document provides an example of horizontal analysis using financial data from the annual reports of two companies, ASD Inc. and Apple Inc. It includes income statement data such as net sales, cost of goods sold, expenses, and net income for 2017 and 2018. The data is used to calculate absolute and percentage changes between the two years to analyze trends over time.

Uploaded by

sexy samuel
Copyright
© © All Rights Reserved
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Horizontal Analysis Excel Template

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Let us take the example of a company named ASD Inc. which is a manufacturer of precision components for tier I OEMs.
From its latest annual report, the following income statement is available:

Particulars (in millions) 2018 2017 Absolute


Change % Change
Net Sales $250.40 $220.80 $29.60 13.41%
Cost of Good Sold $131.95 $123.50 $8.45 6.84%
Gross Profit $118.45 $97.30 $21.15 21.74%
SG&A Expenses $65.50 $55.30 $10.20 18.44%
Operating Income $52.95 $42.00 $10.95 26.07%
Interest Expense $13.30 $10.20 $3.10 30.39%
Income Tax Expense $12.60 $11.90 $0.70 5.88%
Net Income $27.05 $19.90 $7.15 35.93%
components for tier I OEMs.
Let us take the annual report of Apple Inc. for the year 2018 to illustrate the preparation of horizontal analysis of the financ
In this case we will be using the income statement and accordingly the following information has been extracted from the a

Particulars (in millions) 2018 2017 2016 % change in


2018
Net Sales $265,595 $229,234 $215,639 15.86%
Cost of Sales $163,756 $141,048 $131,376 16.10%
Research and Development $14,236 $11,581 $10,045 22.93%
SG&A Expense $16,705 $15,261 $14,194 9.46%
Other Income $2,005 $2,745 $1,348 -26.96%
Provision for Income Taxes $13,372 $15,738 $15,685 -15.03%
Gross Profit $101,839 $88,186 $84,263 15.48%
Operating Income $70,898 $61,344 $60,024 15.57%
Net Income $59,531 $48,351 $45,687 23.12%
tion of horizontal analysis of the financial statement.
rmation has been extracted from the annual report:

% change in
2017
6.30%
7.36%
15.29%
7.52%
103.64%
0.34%
4.66%
2.20%
5.83%

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