Financial Terms: Comparative Analysis

The comparative analysis method, also called comparative analysis, compares the objective things to achieve the essence and the law of knowing things and make the correct evaluation.

Contrastive analysis usually compares two interrelated index data, showing and showing the size, level, speed, and coordination of various factors.

In the comparative analysis, it is a very critical step to choose the appropriate standard for comparison. Only when the choice is right, can we make objective evaluation, choose unsuitable and evaluate the wrong conclusion.

The form of comparative analysis

The comparative analysis method has two forms according to the special needs of analysis.

1, absolute number comparison

It is a comparison between absolute numbers and a search for differences.

2, relative number comparison

It is a comprehensive index, which is calculated by the comparison of two related indicators, to reflect the quantitative connection degree of objective phenomena, and its numerical value is expressed as relative numbers.

Because of different research objectives and contrast bases, relative numbers can be divided into the following categories:

1) the relative number of structures: comparing the partial values and the total values of the same body.

2) proportional relative number: comparing the numerical values of different parts of the same body, showing the proportion of the various parts of the population, such as the sex ratio of the population, the proportion of investment and consumption, etc.

3) the relative relative number: comparing the two indexes with the same nature in the same period, indicating the quantitative comparison relationship of similar phenomena under different spatial conditions.

For example, comparison of commodity prices in different regions, comparisons between different industries and different enterprises.

4) relative strength: compare the two aggregate indexes that are different in nature but have certain connection.

5) the relative degree of the completion of the plan: a comparison of the actual completion number with the plan number in a certain period, so as to illustrate the degree of completion of the plan.

6) dynamic relative number: comparing the same phenomenon in different periods of indicators to illustrate the direction of development and the speed of change.

For example, the speed of development and the speed of growth.

Standards for comparative analysis

There are several options for comparison.

1, time standard

The time standard is to choose the index value of different time as the contrast standard. The most commonly used method is "year-on-year" compared with the same period last year, and it can also be compared with the previous period, and it can also be compared with some key periods in the period of reaching the best historical level or in history.

2. Space standard

The spatial criterion is to select different spatial index data for comparison.

1) comparison with similar spaces, such as the city with some similar conditions.

2) compared with advanced space, such as China and developed countries.

3) compare with the expanded space standard, such as the level of our city and the national average.

3. Experience or theoretical standard

The standard of experience is derived from the summarization of a large number of historical data.

For example, the Engel coefficient that measures the quality of life.

Theoretical criterion is the basis of reasoning through known theory.

4. Plan standard

The plan standard is compared with plan number, quota number and target number.