[Verse 1]
When numbers tell a story through the years
We need a way to see what time reveals
Horizontal analysis shows the trend
Compare this year to last, see how we bend
Take current year minus the base amount
Divide by base, that's how percentages count
Growth or decline becomes crystal clear
When we track performance year by year
[Chorus]
Horizontal shows the flow through time
Vertical shows each piece of the pie
H is for history, tracking the line
V is for vertical, parts that align
Common-size statements break it all down
Percentages paint the clearest sound
Trend analysis lights the way
Shows us how finances change day by day
[Verse 2]
Vertical analysis takes a different view
Each line item as a percentage true
Income statement uses revenue as base
Balance sheet puts total assets in place
Every expense becomes a percent of sales
Every asset tells proportional tales
Compare companies of different size
When common-size statements harmonize
[Chorus]
Horizontal shows the flow through time
Vertical shows each piece of the pie
H is for history, tracking the line
V is for vertical, parts that align
Common-size statements break it all down
Percentages paint the clearest sound
Trend analysis lights the way
Shows us how finances change day by day
[Bridge]
Base year is your starting point
Horizontal tracks each joint
Current year divided by the past
Shows if growth or loss will last
Vertical takes the total sum
Makes each part a percentage come
Both together paint the scene
Show you what the numbers mean
[Verse 3]
Gross profit margin stays at twenty-five
But revenue growth keeps us alive
Horizontal shows our sales increased
While vertical shows costs never ceased
Working capital trending down each year
Liquidity concerns are getting near
Both perspectives tell the tale
Help investors see beyond the veil
[Chorus]
Horizontal shows the flow through time
Vertical shows each piece of the pie
H is for history, tracking the line
V is for vertical, parts that align
Common-size statements break it all down
Percentages paint the clearest sound
Trend analysis lights the way
Shows us how finances change day by day
[Outro]
Time and structure, both reveal
What the financial statements feel
Horizontal, vertical, side by side
Let the trends become your guide