Vertical financial analysis, also known as common-size analysis, is a powerful method of examining financial statements by expressing each line item as a percentage of a base figure. For the income statement (P&L), the base is typically net sales revenue (set to 100%), while for the balance sheet, it is usually total assets (or total liabilities and equity). This approach creates a "normalized" view of the statement, where every item — from cost of goods sold to operating expenses and net profit — is shown as a proportion of the whole.

By converting absolute numbers into percentages, vertical analysis makes it easy to:

• Identify the relative size and structure of costs, margins, and assets

• Reveal trends in operational efficiency over time

• Highlight structural changes in the business

• Enable fair and meaningful comparisons between companies of different sizes or across different industries — regardless of differences in total revenue or asset values.

1C:Perform — the powerful Corporate Performance Management (CPM) solution from 1Ci, fully localized for the Turkish market — turns this essential technique into a seamless, automated capability. It integrates vertical analysis directly into budgeting, consolidation, plan-fact tracking, and BSC monitoring. With delivery through 1C:Perform Cloud, Turkish financial consulting firms can easily implement common-size models and transform them — along with many other financial tools — into scalable, client-ready products.

Why Vertical Analysis Matters So Much — And Why 1C:Perform Fits Perfectly

Turkish businesses face unique pressures:

• High and volatile inflation (see latest TÜİK CPI data at https://www.tuik.gov.tr/)

• Currency devaluation affecting imported costs

• Complex group structures in holdings and family businesses

• Need for fast, reliable consolidated reporting under Turkish Financial Reporting Standards (TFRS) (official standards at https://www.kgk.gov.tr/)

Common-size analysis helps reveal:

• Rising COGS % due to raw material imports

• Structural OPEX creep despite nominal cost control

• Margin resilience (or vulnerability) under different economic scenarios

1C:Perform addresses all of this natively: budgeting & forecasting, group consolidation, plan-fact analysis, BSC dashboards, what-if modeling — all in one platform compliant with Turkish regulations and optimized for local data sources.

How Vertical Financial Analysis Works Natively in 1C:Perform

1. Setting Up the Financial Model

In the Budgeting / Financial Models module:

• Define base indicators:

• P&L → Net Sales Revenue (Satış Gelirleri) = 100%

• Balance Sheet → Total Assets (Toplam Aktifler) = 100%

• Leverage built-in dimensions: branches (şubeler), projects (projeler), cost centers (maliyet merkezleri), products – matching typical Turkish group structures.

Add calculated percentage indicators directly in the model constructor:

COGS % = Cost of Sales / Net Sales Revenue × 100

Gross Margin % = (Net Sales Revenue – Cost of Sales) / Net Sales Revenue × 100

OPEX % = Operating Expenses / Net Sales Revenue × 100

EBITDA % = EBITDA / Net Sales Revenue × 100

These calculations update automatically whenever source data changes.

2. Importing Data & Automatic Common-Size Generation

Pull actuals from accounting/ERP systems or Excel/GL files.

1C:Perform instantly populates common-size views in standard reports:

• Income Statement report → add "% of Revenue" column via Additional Calculations (Ek Hesaplamalar)

• Balance Sheet report → "% of Total Assets" view

Example – textile exporter:

• Revenue: 500 million TRY → 100%

• COGS (imported materials + energy): 320 million TRY → 64%

• Gross profit: 180 million TRY → 36%

• OPEX: 95 million TRY → 19%

• Net profit: 65 million TRY → 13%

After inflation spike and TRY devaluation → COGS jumps to 69% (model flags automatically).

3. Visualization, Benchmarking & Scenario Modeling in BSC

Switch to the BSC / KPI Monitor:

• Create dashboards with bar/column charts displaying % structure across quarters/years

• Set color thresholds (green if Gross Margin % > 32–38% for textiles sector benchmark; red if OPEX % > 22%)

• Compare actual / budget / prior year / peer data in one view

• Run what-if scenarios: simulate 20% TRY devaluation or +15% imported input costs → see instant impact on all vertical percentages and breakeven

Group consolidation shows enterprise-wide common-size structure — critical for holdings with diverse subsidiaries.

• Automatic multi-currency revaluation reflecting real TRY dynamics

• Real-time group-level consolidation without manual Excel work

• Granular access controls and audit trails (KVKK-compliant in Cloud)

• Built-in what-if engine for inflation, FX, and cost shock testing

• Integration with local ERPs and other systems 

If you are a financial consultant, outsourced CFO, or head of a financial advisory firm in Turkey, you know the main limitations of Excel-based models:

• They become fragile and hard to maintain as data volumes grow

• Secure client access without risking broken formulas is difficult

• True collaboration and regular updates are nearly impossible

• Protecting your intellectual property (your unique methodologies and calculations) remains weak

This is exactly where 1C:Perform Cloud becomes the natural next step for you and your clients.

You can take your best Excel work — vertical analysis models, factor-based plan-fact analysis, financial leverage calculations, cash-flow forecasting under various inflation scenarios, BSC KPI dashboards, and many others — and migrate them to the cloud platform 1C:Perform Cloud in just a few weeks.

What this gives you as a consultant:

• Your models become living cloud products: clients access them via browser, see real-time data, run “what-if” scenarios themselves — but cannot view or modify your formulas and logic

• You protect your intellectual property through role-based access 

• You move from one-off projects to recurring revenue

• You scale easily: the same model can be adapted and sold to multiple clients (textiles, construction, retail, manufacturing) with minimal changes

• Everything stays compliant with Turkish requirements, as data is hosted in certified Turkish data centers.