What Is Comparative Financial Analysis?

The financial comparative analysis method is also called "contrast analysis method". Compare the actual number of the same financial indicator in the current period with the actual number in the base period, etc. to find out the differences, and make a general evaluation analysis method for the completion of the indicator. It is one of the commonly used technical methods in financial analysis. When comparing and analyzing, we should pay attention to the comparability of the economic content, pricing standard, time range and calculation method of the indicators. For the comparison of indicators between similar enterprises, we must also consider their technical and economic comparability. ^[1]