If an analyst wishes to see a company's current assets as a percentage of total assets, a vertical analysis would be the best approach.

Question

Quizplus · Accepted Answer

Vertical analysis is a tool used to show each line item of the financial statement as a percentage of a base amount. In this case, if an analyst wishes to see the current assets as a percentage of total assets, a vertical analysis would be appropriate as it will depict the proportion of current assets relative to total assets.

If an Analyst Wishes to See a Company's Current Assets