External Analysis: Market researchers with no detailed record of a firm perform this, just like commodity tips researchers. This group, which has to depend almost entirely on published financial statements, includes investors, credit agencies, and governmental agencies regulating a business in a nominal way.
Internal Analysis: It can be performed by those who have access to the accounts and all other information related to business. While conducting this analysis, the analyst is a part of the enterprise he is analyzing. Analysis for managerial purposes is an internal type of analysis and is conducted by executives and employees of the enterprise as well as governmental and court agencies.
Horizontal Analysis: When financial statements for a number of years are reviewed and analyzed, the analysis is called 'horizontal analysis'. As it is based on data from stock recommendations year to year rather than one date or period of time as a whole, this is also known as 'Dynamic Analysis'.
Vertical Analysis: It is frequently used for referring to ratios developed for one date or for one accounting period. Vertical analysis is also called 'Static Analysis'. This is not very conducive to proper analysis of the firm's financial position and its interpretation, as it does not enable to study data in perspective. This can only be provided by a study conducted over a number of years so that comparisons can be affected.
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