Vertical Analysis Of Cash Flow Statement is an accounting method used to compare and analyze cash flow over a period of time. It involves taking each line item of the statement as a percentage of total income or total expenses. This gives you a better understanding of the financial performance of your business, by highlighting trends, areas where more capital is needed, and any other determinations that need to be made. By comparing periods, you can track and observe changes in your cash flow, enabling you to plan your budget accordingly.