Horizontal Analysis Percentage Change:

The formula for horizontal analysis (percent change) can be derived by dividing the difference between the amount in comparison year and amount in base year by the amount in the base year.

Formula to Calculate Horizontal Analysis:

Horizontal Analysis = Amount in Comparison Year - Amount in Base Year

Horizontal Analysis (%) = (Amount in Comparison Year - Amount in Base Year)Amount in Base Year × 100

Example :

For Company ABC Ltd. ,

Net sales in year 2019 : $265595

Net sales in year 2018 : $229234

Horizontal Analysis is calculated using the formula given below

Horizontal Analysis (%) = (Amount in Comparison Year - Amount in Base Year)Amount in Base Year × 100

Horizontal Analysis (%) = (265595 - 229234)229234 × 100

Horizontal Analysis (%) = 36361229234 × 100

Horizontal Analysis (%) = 15.86%