Comparative Financial Statement Analysis


The main task of an analyst is to perform an extensive analysis of financial statements. In this course, we will break down the most important methods, types, and approaches to financial analysis. Comparative Financial Statement Analysis is an integral part carried out by various business organizations all around the world. It depicts the financial health of any company, compare with its nearest peers and helps the companies to augment their resources and strategies (both financial and non-financial) and how those need to be streamlined efficiently.

This course is designed to be useful for both beginners and advanced finance professionals, with the main topics covering: (1) income statement, (2) balance sheet, (3) cash flow, and (4) rates of return.

The overall aim of this Grazing Minds course is to develop the student’s theoretical and practical knowledge in financial statement analysis and valuation with a clear focus on accounting issues in listed companies (IFRS). We work on this course on a Case-Study basis approach where we compare 2 digital leading companies to learn and make inferences from!!!

3 BIG reasons why you should take this course:

  • Great future: There is always a need for financial analysts to perform research.
  • Big money: A financial analyst role typically leads to a high paying career
  • Manage your own investments: Achieve long-term wealth by managing your own stock portfolio.


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Comparative financial statements are the complete set of financial statements that an entity issues, revealing information for more than one reporting period. The financial statements that may be included in this package are:

  1. The income statement (showing results for multiple periods)
  2. The balance sheet (showing the financial position of the entity as of more than one balance sheet date)
  3. The statement of cash flows (showing the cash flows for more than one period)

Another variation on the comparative concept is to report information for each of the 12 preceding months on a rolling basis. Comparative financial statements are quite useful for the following reasons:

  1. Provides a comparison of an entity’s financial performance over multiple periods, so that you can determine trends. The statements may also reveal unusual spikes in the reported information that can indicate the presence of accounting errors.
  2. Provides a comparison of expenses to revenues and the proportions of various items on the balance sheet over multiple periods. This information can be useful for cost management purposes.
  3. May be useful for predicting future performance, though you should rely more on operational indicators and leading indicators than on historical performance for this type of analysis.

It is customary to issue comparative financial statements with additional columns containing the variance between periods, as well as the percentage change between periods.


This course from Grazing Minds will help you draw critical inferences from financial statements of companies.

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