AKA common size analysis. Compares the parts to the whole. Current liabilities, long-term liabilities measured in relation to Total liabilities. (Amounts and Percentages). Ditto with Current Assets, Long term assets, and Total Assets, and with the Stockholder's equity accounts. And with total Liabilities and Stockholder's equity. You can measure different slices, but the base amount will always be considered at 100%. You can measure the Income statment by vertical analysis, but most of our HW had us measuring the balance sheet this way.