Comparative Statement
Definition of 'Comparative Statement'A statement which compares financial data from different periods of time. The comparative statement lines up a section of the income statement, balance sheet or cash flow statement with its corresponding section from a previous period. It can also be used to compare financial data from different companies over time, thus revealing the trend in the financials. |
|
Investopedia explains 'Comparative Statement'Analysts like comparative statements because they show the effect business decisions have on a company's bottom line. Analysts can identify trends and evaluate the performance of managers, new lines of business and new products on one statement instead of having to flip through individual financial statements from different periods of time. When comparing different companies, a comparative statement can show how businesses react to market conditions affecting an entire industry. |
Related Definitions
Articles Of Interest
-
Breaking Down The Balance Sheet
Knowing what the company's financial statements mean will help you to analyze your investments. -
Evaluating A Company's Management
Financial statements don't tell you everything about a company's health. Investigate the management behind the numbers! -
12 Things You Need To Know About Financial Statements
Discover how to keep score of companies to increase your chances of choosing a winner. -
Financial Statement Manipulation An Ever-Present Problem For Investors
The SEC has taken steps to eliminate this type of corporate fraud, but it remains a real risk for investors. -
Depreciation: Straight-Line Vs. Double-Declining Methods
Appreciate the different methods used to describe how book value is "used up". -
Financial Statement: Extraordinary Vs. Nonrecurring Items
When it comes to analyzing a company, successful analysts spend considerable time differentiating between accounting items that are likely to recur going forward from those that most likely will ... -
Get A Career In Showbiz Accounting
An accounting career doesn't have to be boring. If you love numbers, but want excitement as well, consider the field of showbiz accounting. -
What Management Accountants Do
If you like keeping track of a company's income and expenses but also want to hold a position with significant responsibility and authority, management accounting could be the job for you. -
The Basics Of A Financial Analysis Report
Running financial analysis on a company or industry is a key skill every investor must learn and understand how to undertake without which an ineffective financial report and investment recommendation ... -
GAAP And The IFRS Standards Convergence Efforts In 3 Substantial Areas
Understand the specific steps that have been taken in hopes of converging the GAAP and the IFRS accounting standards, despite the philosophically and culturally based methodological differences ...
Free Annual Reports