Comparative statement analysis

When trying to compare the performance of a company in relation to its competitor or historical performance, there may be a great difficulty in properly assessing its performance. This is due to the difference in size between the companies, or possible differences in size between different periods of time for the same company. To solve this problem, a comparative financial statement analysis was devised. In a comparative financial statement, each item of the income statement or balance sheet is stated as a percentage of a relevant base amount such as sales or total assets respectively. [Read more…] about Comparative financial statement analysis