Horizontal analysis differs from vertical analysis in which way? Horizontal analysis requires reporting results for multiple periods whereas vertical analysis requires financial statements for the period of analysis, only. Horizontal analysis is used only on the balance sheet, whereas vertical analysis is used only on the income statement. Horizontal analysis compares performance against previous reporting periods whereas vertical analysis compares performance against future planned operational periods. Horizontal analysis is used only on the income statement and vertical analysis is used only on the balance sheet.
