horizontal analysis

Definition

The method of evaluating the rate of profit on an investment by projecting increases over several years. For example, if a company received a 15 percent profit increase in the previous quarter, an accountant will project another 15 percent profit increase for the next quarter.

Use horizontal analysis in a sentence

Our horizontal analysis was in and we decided to go a new route with our company and make some changes.

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You should try and take a horizontal analysis to figure out if there is any way to help grow your business.

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The horizontal analysis was useful in making accurate projections and forecasts based on real evidence by extrapolating data out to the future.

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