Comparative analysis of Financial reports

Comparative Analysis Of  Financial Reports

Comparative financial reports are the statement which compares financial data from different periods of time. Comparative statements calculate the difference between multiple years of data and report that difference in percentages.

It can also be used to compare financial data from different companies over time, thus revealing the trend in the financials.

Financial analysis determines a company’s health and stability. The data gives you an intuitive understanding of how the company conducts business. Stockholders can find out how management employs resources and whether they use them properly. Governments and regulatory authorities use financial statements to determine the legality of a company’s fiscal decisions and whether the firm is following correct accounting procedures.


  • Variance analysis of Income statement, balance sheet items and cash flow statement and identifying any exceptional or unwanted items
  • Percentage highlights to notice large changes from one year to next year in order to investigate the reason for such higher percentage
  • Calculation of liquidity, efficiency and profitability ratios and analyze the ratios with the best practice companies in the similar industry