Vertical analysis Q Vertical analysis is used to show the relationship of the component parts to the total in a single statement n In the vertical analysis of the balance sheet each asset or equity item is stated as a percent of total assets: n In the vertical analysis of the income statement, each item is stated as a percent of net sales; Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity9 Vertical analysis ⧫Vertical analysis is used to show the relationship of the component parts to the total in a single statement  In the vertical analysis of the balance sheet, each asset or equity item is stated as a percent of total assets;  In the vertical analysis of the income statement, each item is stated as a percent of net sales;