Comparative Financial Analysis

Comparative Financial Analysis involves evaluating a company's financial performance by comparing it with other companies or industry benchmarks. This process helps stakeholders understand how well a business is doing relative to its peers. Analysts look at key financial metrics, such as revenue, profit margins, and return on investment, to identify strengths and weaknesses. By examining these comparisons over time or across similar organizations, businesses can make informed decisions, identify areas for improvement, and enhance overall performance. Essentially, it's about understanding a company's standing in its market.