comparative figures
Comparative figures are the prior period's numbers shown side by side with the current period's in the same statement. A single year's profit of $12,000 tells you very little on its own — was that great or terrible? Putting last year's $9,000 right next to it instantly turns a lonely number into a story: the business grew.
In practice almost every published financial statement shows at least two periods in adjacent columns: this year and last year (annual reports often show two prior years for the income statement and one for the balance sheet). The standards require this so readers can spot trends and changes rather than guess. If a company changes an accounting method, it normally restates the comparative figures onto the new basis so the comparison stays fair, and discloses that it did so.
Comparatives are the foundation of almost all financial analysis, including horizontal and trend analysis. One honest caution: a clean side-by-side comparison assumes the two periods were prepared the same way and the business did not fundamentally change. A big acquisition, a new accounting rule, or a change of year-end can make the columns less comparable than they look, which is exactly why such changes must be disclosed in the notes.
An income statement places 2026 and 2025 in two columns: revenue $150,000 vs $120,000, net income $12,000 vs $9,000 — the reader sees growth at a glance instead of judging one year in isolation.
Two columns turn a standalone number into a visible trend.
Comparatives are only meaningful if the periods were prepared consistently; an accounting change or restructuring can quietly break comparability unless it is disclosed.