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# 2 Types of financial statement analyses

There are three main techniques that help users build an opinion about the financial strength and performance of a business: ratio analysis, vertical analysis (also known as common size analysis) and horizontal analysis.

Figure 4 There are three different types of financial statement analyses

There are other types of analyses as well, such as segmental analysis and historical summaries, which may help users to gain a holistic understanding of a business.

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OpenLearn - Financial statement analysis and interpretation
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