Which of the following tools are used in vertical analysis?

Both 1 and 2

Vertical analysis is a financial analysis technique used to assess the relative proportions of different items within a financial statement. It involves expressing each line item of a financial statement as a percentage of a common base amount. The purpose of vertical analysis is to identify the composition and significance of individual elements in relation to the total or the base amount. Common size statements and financial ratios are the two tools employed in vertical analysis.