What Is a Comparative Statement?

[stevesmith]

What exactly is a comparative statement, and how is it used in accounting or financial analysis? I’ve seen it mentioned in relation to balance sheets and income statements, but I’m not entirely sure how it helps in comparing financial performance over different periods. Can someone explain with an example?

 

[Sunita]

A comparative statement is a financial report (like a balance sheet or income statement) that shows figures for two or more accounting periods side by side.
Purpose: It helps analyze changes and trends in financial performance — for example, how revenue, expenses, or assets have increased or decreased over time.
Example (Comparative Income Statement):

Particulars	2024 ($)	2025 ($)	Change ($)	Change (%)
Sales	200,000	250,000	+50,000	+25%
Cost of Goods Sold	120,000	150,000	+30,000	+25%
Net Profit	80,000	100,000	+20,000	+25%

Use: Quickly shows that both sales and profit rose 25% from 2024 to 2025, indicating consistent growth.
In short: Comparative statements make it easy to spot trends, measure growth, and assess financial health across periods.

 

[isabel]

A comparative statement displays financial information of various periods alongside each other, and thus it helps you easily identify the trends or changes in performance such as comparing the income or expenses of the last year and this year.

 

[Gsusangrey]

A comparative statement is a financial document that shows the financial information of a business for two or more periods side by side, such as the income statement or balance sheet. Its goal is to assist stakeholders in analyzing trends and business performance over time by clearly highlighting absolute and percentage changes.