The type of financial analysis you get will vary largely based on both the situation of the business in question and your current goals.
Vertical and horizontal analysis are the two most common types. Vertical analysis, also known as a common-size income statement, allows you to see the percentage of revenue going to various expenses.
Horizontal analysis allows you to compare your business’s performance over time. This allows you a broad view of your company’s performance, which in turn can be used to spot periods of time where your financial information is irregular.
Along with these, short term analysis is also beneficial. It allows you to see if your business has the appropriate amount of liquidity, given the current state of your working capital.
For most forms of financial analysis, you’ll want to use other companies in your industry as a benchmark. This allows you to understand where you’re beating your competitors and where you need to use their example to better your own business.
Multi-company comparison allows you to compare your business’s financial to one competitor, while industry comparison allows you to see how you compare to the average financials in your industry.