— Kishore V, SME and ACW at Edumarz
- Comparative statements, often known as comparative financial statements, are representations of a company’s financial situation across time.
- By comparing financial data from two or more accounting periods, these statements aid in assessing the profitability of a corporation.
Horizontal Analysis refers to the process of updating data from two or more eras side by side. - The benefit of such an analysis is that it aids investors in identifying business trends, monitoring a company’s success, and comparing it to that of its rivals.