TYPES OF FINANCIAL ANALYSIS

a) According to the material used, the study can be -

i) External analysis: Where analysis is done by exterior interested parties and

 ii) Internal analysis: Where study is done by inner parties

b) According to the modus operandi of the study, the study can be -

i) Horizontal analysis: Where every single item in the declaration is analyzed over a numeral of years, so that its trend is known and

ii) Vertical analysis: Where a variety of items in a exact year's statement are analyzed so that inter relationships are understood.