Data for multiple years in a single format

A typical balance sheet merely shows the account balances on a single date; however, a comparative balance sheet shows not only the account balances on multiple dates but also the change in the data over time. This aids in trend analysis.

Ratio analysis

Financial ratios are derived from a balance sheet. As a comparative balance sheet provides data for multiple years, it is easy to calculate and analyze financial ratios with its help.

Easy analysis of the trend

It assists a financial analyst in determining the nature, breadth, and direction of change in various balance-sheet components.