Vertical analysis is also known as ________.

Vertical analysis is also known as common-size analysis. This technique is used in financial statement analysis to evaluate and compare financial data across time periods or with other companies. In vertical analysis, each line item in the financial statement is expressed as a percentage of a base item. For example, in the income statement, each expense can be shown as a percentage of total revenue, while in the balance sheet, each asset can be expressed as a percentage of total assets. This allows stakeholders to easily compare financial performance and structure, facilitating a better understanding of how various elements contribute to the overall financial position of a company. Vertical analysis is particularly useful for identifying trends and making comparisons between companies of different sizes within the same industry.