Comparison in economic analysis. Comparative analysis method

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Comparison is one of the ways in which man began to recognize environment. In modern reality, we use this method at every step, sometimes automatically, unconsciously. Emphasizing its importance, we can refer to the saying: “Everything is known by comparison.” It has also become widespread in the study of economic phenomena. Each indicator, each figure used for assessment, control and forecast, has meaning only in comparison with another.

The essence of this method can be revealed as follows. Comparison is scientific method cognition, in the process of its unknown (studied) phenomenon, objects are compared with already known, previously studied, in order to determine common features or differences between them. With the help of comparison, the general and specific in economic phenomena are determined, changes in the objects under study, trends and patterns of their development are studied.

IN economic analysis comparison is used to solve all its problems as a main or auxiliary method. Let's list the most typical situations when comparison is used, and the goals that are achieved.

1. Comparison of planned and actual indicators to assess the degree of implementation of the plan.

2. Comparison of actual indicators with standard ones allows for cost control and promotes the introduction of resource-saving technologies.

3. Comparison of actual indicators with indicators of previous years to determine trends in the development of economic processes.

4. Comparison of the indicators of the analyzed enterprise with the achievements of science and best practices of other enterprises or divisions is necessary to find reserves.

5. Comparison of the indicators of the analyzed enterprise with the average indicators for the industry is carried out in order to determine the position of the enterprise in the market among other enterprises of the same industry or sub-industry.

6. Comparison of parallel and dynamic series to study the relationships between the studied indicators. For example, . simultaneously analyzing the dynamics of changes in the volume of gross output, the main production assets and capital productivity, the relationship between these indicators can be substantiated.

7. Comparison various options management decisions in order to select the most optimal one.

8. A comparison of performance results before and after a change in any factor is used when calculating the influence of factors and calculating reserves.

Let's take a closer look at each type of comparison.

As noted earlier, one of the tasks of the ACD is systematic monitoring and comprehensive assessment of the activities of enterprises in fulfilling the economic and social development. This necessitates comparison of actual data with planned data . This comparison allows you to determine the degree of implementation of the plan for a month, quarter or year (Table 4.1).

Comparison of actual data with planned data can also be used to check the validity of planned indicators. To do this, actual data for an average of three to five previous years is compared with the data from the current year's plan.

Of no small importance in ACD is comparison of the achieved level for certain indicators with data long-term plan. Such a comparison makes it possible to see the progress of the long-term plan and tasks for the future period.

It is very often used in business analysis comparison actually results achieved with data from previous years. Compare the results of today with yesterday, the current month, quarter, year with the past. This makes it possible to assess the rate of change in the studied indicators and determine trends and patterns in the development of economic processes.

Next view - comparison with the best results, those. With the best examples labor, advanced experience, new achievements of science and technology. Such comparisons can be made both within the enterprise under study and outside it. Within the enterprise, a comparison is made of the average level of indicators achieved by the team as a whole with the indicators of advanced sections, teams, and workers. This allows for the identification of best practices and new production opportunities.

Of great importance inter-farm comparative analysis, during which the indicators of the analyzed enterprise are compared with the indicators of leading enterprises with top scores under the same initial business conditions. Such an analysis is aimed at finding new production opportunities, studying best practices and is an important means of identifying reserves for increasing the efficiency of an enterprise. Especially great importance have comparisons of the results of the analyzed enterprise with the data of competitors’ enterprises.

Comparisons between enterprises can be classified into direct and indirect. In an environment of competition and trade secrets, competing enterprises rarely exchange information unless they belong to the same group and report to the same control center. Therefore, it is not always possible to make direct comparisons of the situation of one enterprise with the situation of another. As a rule, one has to be content with indirect comparisons based on published average statistical data for a particular industry or published reports joint stock companies and limited liability companies.

Very often in the analysis the indicators of the enterprise under study are compared with industry average data or averages for the ministry, association, concern etc. Such a comparison is necessary for a more complete and objective assessment of the activities of the analyzed enterprise, determining its rating among other business entities in this industry, studying the general and specific factors that determine the results of its economic activity.

In AHD it is also used comparison different options solving economic problems, which allows you to choose the most optimal one and thereby more fully use production capabilities. It is especially widely used in preliminary analysis to justify plans and management decisions.

Comparison of parallel and time series used to determine and justify the form and direction of the relationship between different indicators. For this purpose, the numbers characterizing one of the indicators must be arranged in ascending or descending order and consider how the other indicators under study change in connection with this: increase or decrease, and to what extent.

In economic analysis, the following types of comparative analysis are distinguished: horizontal, vertical, trend, as well as one-dimensional and multidimensional.

Horizontal comparative analysis is used to determine absolute and relative deviations of the actual level of the studied indicators from the base (planned, last period, average level, scientific achievements and best practices).

By using vertical benchmarking the structure of economic phenomena and processes is studied by calculating specific gravity parts in the general whole (specific gravity equity in its total amount), the relationship between the parts of the whole (for example, equity and borrowed capital, fixed and working capital), as well as the influence of factors on the level performance indicators by comparing their values before and after changing the corresponding factor.

Trend analysis is used when studying the relative rates of growth and increase in indicators over a number of years to the level of the base year, i.e. when studying time series.

In univariate comparative analysis comparisons are made for one or more indicators of one object or several objects for one indicator.

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"THEORY OF ECONOMIC ANALYSIS"

Subject: « Method of comparison in economicsanalysis"

PLAN

1. Essence and types of comparison

2. Types of comparisons and their purpose

1. Essenceand typescomparisons

Comparison is one of the ways in which man began to recognize the environment. In modern reality, this method is used at every step, sometimes automatically, unconsciously.

It has also become widespread in the study of economic phenomena. Each indicator, each figure used for assessment, control and forecast, has meaning only in comparison with another.

The essence of this method can be revealed as follows. Comparison is a scientific method of cognition, in the process of which an unknown (studied) phenomenon, objects are compared with already known, previously studied, in order to determine the common features or differences between them.

With the help of comparison, the general and specific in economic phenomena are determined, changes in the objects under study, trends and patterns of their development are studied.

In economic analysis, comparison is used to solve all its problems as a main or auxiliary method.

The most typical situations when comparison is used:

1. Comparison of planned and actual indicators to assess the degree of implementation of the plan.

2. Comparison of actual indicators with standard ones allows for cost control and promotes the introduction of resource-saving technologies.

3. Comparison of actual indicators with indicators of previous years to determine trends in the development of economic processes.

4. Comparison of the indicators of the analyzed enterprise with the achievements of science and best practices of other enterprises or divisions is necessary to find reserves.

6. Comparison of parallel and dynamic series to study the relationships between the studied indicators.

7. Comparison of various options for management decisions in order to select the most optimal one.

8. A comparison of performance results before and after a change in any factor is used when calculating the influence of factors and calculating reserves.

In economic analysis, there are also horizontal, vertical, trend, one-dimensional and multidimensional types of comparative analysis.

Horizontal comparative analysis is used to determine absolute and relative deviations of the actual level of the studied indicators from the base (planned, past, average level, scientific achievements and best practices, etc.).

Using vertical comparative analysis, the structure of economic phenomena and processes is studied by calculating the share of parts in the overall whole (the share of equity capital in its total amount), the relationship between the parts of the whole, as well as the influence of factors on the level of performance indicators by comparing their values before and after changing the corresponding factor.

Trend analysis is used to study the relative rates of growth and increase in indicators over a number of years to the level of the base year, i.e. when studying time series.

In a one-dimensional comparative analysis, one or more indicators of one object or several objects are compared according to one indicator.

In multidimensional comparative analysis, the performance results of several enterprises are compared according to several indicators. Multivariate benchmarking is used to determine the ranking of each enterprise in the population of enterprises.

A prerequisite for comparative analysis is the comparability of the compared indicators, which presupposes:

Unity of volume, cost, quality, structural indicators;

Unity of time periods for which comparison is made;

Comparability of production conditions;

Comparability of the methodology for calculating indicators.

2 . Types of comparisons and their purpose

As noted earlier, one of the tasks of economic analysis is the systematic monitoring and comprehensive assessment of the enterprise’s activities in implementing the economic and social development plan. This determines the need to compare actual data with planned data. Such a comparison allows us to determine the degree of implementation of the plan for a month, quarter, year (Table 2.1).

Table 2.1

Execution of production plan

Product type	Production volume, million rubles.	Absolute deviation	Implementation of a plan, %

Comparison of actual data with planned data can also be used to check the validity of planned indicators. To do this, actual data for an average of three to five previous years is compared with the plan data for the current year (Table 2.2).

Table 2.2

Product production, million rubles.(in comparable prices)

products	Past years	On average over four years	next year

Comparison of the actual level of indicators with the planned ones is also necessary to identify production reserves. For this purpose, actual data on the volume of activities carried out is compared with planned ones. If the plan for any activity was not fulfilled, then this can be considered as an unused reserve for increasing production (Table 2.3).

Table 2.3

Implementation of the organizational and technical measures plan

Of no small importance in economic analysis is the comparison of the achieved level for certain indicators with the data of the long-term plan. Such a comparison makes it possible to see the progress of the long-term plan and tasks for the future period (Table 2.4).

Table 2.4

Implementation of the long-term production plan

In practice analytical work comparison with approved standards is also used (for example, consumption of materials, raw materials, energy, etc.) (Table 2.5).

Table 2.5

Use of raw materials and supplies

Type of material resources	Resource consumption, t	Deviation from the standard (+,-)
	according to the norm for the actual volume of production	actually	absolute, t	relative, %
Petroleum products

Materials

Such a comparison is necessary to identify savings or over-expenditure of resources on production, to assess the effectiveness of their use in the production process and to determine lost opportunities to increase production output and reduce its cost.

In business analysis, a comparison of actually achieved results with data from previous years is very often used. This makes it possible to assess the rate of change in the studied indicators and determine trends and patterns in the development of economic processes (Table 2.6).

Table 2.6

Dynamics of main indicators

Gross output	Amount of workers	Labor productivity
	% to base year		% to base year	% to base year

Comparison with best results, i.e. with the best examples of labor, best practices, new achievements of science and technology, can be carried out both within the enterprise under study and outside it.

Within the enterprise, a comparison is made of the average level of indicators achieved by the team as a whole with the indicators of advanced sections, teams, and workers. This allows for the identification of best practices and new production opportunities.

Of great importance is inter-farm comparative analysis, during which the indicators of the analyzed enterprise are compared with the indicators of leading enterprises that have the best results under the same initial business conditions.

Such an analysis is aimed at finding new production opportunities, studying best practices and is an important means of identifying reserves for increasing the efficiency of an enterprise. Comparisons of the operating results of the analyzed enterprise with data from competitors’ enterprises are especially important.

Comparisons between enterprises can be classified into direct and indirect.

In an environment of competition and trade secrets, competing enterprises rarely exchange information unless they belong to the same group and report to the same control center. Therefore, it is not always possible to make direct comparisons of the situation of one enterprise with the situation of another.

As a rule, one has to be content with indirect comparisons based on published average statistical data for a particular industry or published reports of joint-stock companies and limited liability companies.

Very often, in the analysis, the indicators of the enterprise under study are compared with industry averages or averages for a ministry, association, concern, etc.

Such a comparison is necessary for a more complete and objective assessment of the activities of the analyzed enterprise, determining its rating among other business entities in this industry, and studying the general and specific factors that determine the results of its economic activities.

Economic analysis also involves comparing different options for solving economic problems, which allows you to select the most optimal one and thereby more fully use production opportunities. It is especially widely used in preliminary analysis to justify plans and management decisions.

Comparison of parallel and time series is used to determine and justify the form and direction of the relationship between different indicators. For this purpose, the numbers characterizing one of the indicators must be arranged in ascending or descending order and consider how other indicators under study change in connection with this (Table 2.7).

Table 2.7

Dependence of grain yield on land quality

Farm number	Land quality, score	Productivity, c/ha	Farm number	Land quality, score	Productivity, c/ha

LISTUSEDLITERATURES

1. Lyubushin N. P., Leshcheva V. B., Dyakova V. G. “Analysis of the financial and economic activity of an enterprise”, M.: UNITY-DANA, 2000

2. Osmolovsky V.V., Strazhev V.I., Kravchenko L.I., Ermolovich L.L., Busygin Yu.N., Rusak N.A. “Theory of analysis of economic activity”, Mn.: Vysh. school, 1989.

3. Savitskaya G.V. “Analysis of the economic activity of an enterprise”, Minsk: LLC “New Knowledge”, 1999.

4. Silbiger S. “MBA in 10 days” Trans. from English Shustera E.V., M. CJSC “Consultant Plus”, 2002

Comparison as a way of knowing

Comparison is one of the main methods of understanding the surrounding reality. The basis of this method is quite simple: identifying and comparing individual phenomena of a social, economic, political or other nature in order to detect distinctive similarities and differences.

Based on the comparison, a conclusion of a justified or conjectural nature is made about the homogeneity of phenomena, the similarity of their content, general orientation, etc. This allows the use of data about one object when studying another. If, during the course of the study, some discrepancies were discovered, this allows us to indicate the peculiarity, specificity and uniqueness of one phenomenon or object in relation to another.

Concept and categories of comparative analysis method

The method of comparative analysis originates from this general scientific method, as an analogy. However, unlike the latter, comparison involves the use of elements of other methods, including analysis, methods of thinking, modeling, synthesis, induction, deduction, etc. The main purpose of comparison is to obtain new facts not only from various properties compared objects or phenomena, but also analysis of their various relationships. Based on this, it is possible to draw up a general trend for their subsequent functioning and development.

The methods of the comparative approach lead to the fact that already established views on certain phenomena and facts can be revised. The comparison can also reveal features that are specific to a particular object or phenomenon, but were previously not known to researchers. Thus, comparison contributes to a deeper study and knowledge of objects and phenomena, as well as the search for them distinctive features and differences at different levels of research.

Benchmarking mechanism

The comparative research method has its own mechanism, which includes the following components:

General scientific methods. These include: analogy, induction and deduction, analysis and synthesis, etc.
Logical apparatus. An extensive system of categories that is used in comparison and analysis operations. Each object or phenomenon has its own system of categories.

A variation of the comparison method such as segmentation also deserves special attention. Its essence is that information about an object or phenomenon is divided into separate parts - segments, which are subsequently subjected to research. In this case, comparison can be made according to different criteria, in particular, historical comparative method, where an object is studied not only in comparison with other objects, but also in comparison with itself at different time stages.

Segmentation, as one of the methods of comparative analysis, involves studying not only the characteristics of individual elements of a particular object or phenomenon, but also the nature and tendency of its functioning and development within the framework of the whole.

Stages of comparative analysis and forecasting

The comparative method of assessing objects and phenomena provides for the implementation of research at several levels:

Collection and processing of all received information. Moreover, all data must be objective, accurate and provable.
Systematization of information. All data must be distributed to different categories and give the collected material a structural appearance.
Interpretation of the received data. Based on the analysis and comparison of information, specific conclusions are drawn.

At correct execution After these stages, the researcher can formulate justifications for the forecast. The most in a simple way forecasting is the direct comparison of information about an object or phenomenon at different levels, for example in different regions, countries, etc. The second method of forecasting involves putting forward specific hypotheses supported by real facts.

Rules for carrying out comparative analysis

The comparative research method will be effective only if all the rules for its implementation are followed:

Carrying out comparisons at different levels using analogy, system-historical analysis and logic.
Correct selection of objects for the comparison process.
Specific goal setting.
The comparative analysis method must be carried out using specific criteria.
Clear definition of the characteristics of compared objects and phenomena.
Processing of comparison results and analysis of the possibility of their application in practice.

All data obtained during the research process must be clear, unambiguous and provable.

Types of comparative studies

The comparative method has its own typology. In science, the following types of research are distinguished:

According to the scope of the study: macro and micro comparison.
According to the goals, practical (or functional) and theoretical (or scientific) research are distinguished.
According to the level, research can be intersystem, intrasystem, intranational, historical, intersectoral, etc.

In addition, synchronous and asynchronous comparison are also distinguished. In the first case, we are talking about parallel and simultaneous comparison, and in the second case, the comparative method can be applied to objects that are located in different time periods.

Pros and cons of the comparative method

The comparative approach has a number of pros and cons that the researcher must take into account in his work. Concerning positive aspects, then they are as follows:

The method allows you to reflect the current and real situation in relation to the object or phenomenon under study.
All data are statistically substantiated.
During the research process, adjustments can be made to the phenomena or objects being compared.
In the presence of large quantity information method is very easy to implement and gives reliable and reliable results.

The method also has its disadvantages:

Data may be out of date at the time study results are interpreted.
The accuracy of the data obtained depends on the stability of the object being studied.
Reliable and accurate data requires a large amount of information.

The ratio of the positive and negative aspects of the method determines the effectiveness of its application in each specific case.

Examples of using the comparative analysis method

The features of the comparison method allow it to be used in a variety of areas, such as:

Biology and anatomy.
Linguistics, in particular comparative linguistics.
Literary studies and mythology.
Comparative Politics.
Economic Sciences.
Jurisprudence and jurisprudence.
Psychology.
Sociological Sciences.
Religious Studies.
Philosophy, etc.

The comparative method has a number of features that allow it to be used effectively in a variety of sciences. The method has its own classification, typology, as well as rules and features of research on different stages. The choice of this method is determined by the availability required quantity information and selection of optimal criteria.

Comparison is a scientific method of cognition, in the process of which an unknown (studied) phenomenon, objects are compared with already known, previously studied, in order to determine the common features or differences between them. With the help of comparison, the general and specific in economic phenomena are determined, changes in the objects under study, trends and patterns of their development are studied.

In economic analysis, comparisons are used to solve all its problems as a main or auxiliary method. Let us list the most typical situations when comparison is used and the goals that are achieved (types of comparisons):

1.Comparison planned and actual indicators to assess the degree of implementation of the plan. Such a comparison allows you to determine the degree of implementation of the plan for a month, quarter or year.

2. Comparison of actual indicators with regulatory allows you to control costs and promotes the introduction of resource-saving technologies Comparison of actual indicators with the indicators of previous years to determine trends in the development of economic processes.

3.Comparison with best results , those. with the best examples of labor, best practices, new achievements of science and technology can be carried out both within the enterprise under study and beyond its borders. Within the enterprise, a comparison is made of the average level of indicators achieved by the team as a whole with the indicators of advanced sections, teams, and workers. This allows for the identification of best practices and new production opportunities.

4. Comparison of indicators of the analyzed farm with average performance by district, zone, region to assess the results achieved and determine unused reserves.

5. Comparison parallel and dynamic series to study the relationships between the studied indicators. For example, by simultaneously analyzing the dynamics of changes in the volume of gross output, fixed production assets and capital productivity, it is possible to substantiate the relationship between these indicators. Comparison various options for management decisions in order to select the most optimal one.

6.Comparison performance results before and after changing any factor used when calculating the influence of factors and calculating reserves.

In economic analysis, the following types of comparative analysis are also distinguished: horizontal, vertical, trend, as well as one-dimensional and multidimensional.

1. Horizontal comparative analysis is used to determine absolute and relative deviations of the actual level of the studied indicators from the base

2. With vertical benchmarking the structure of economic phenomena and processes is studied by calculating the proportion of parts in the overall whole, the relationship between the parts of the whole, as well as the influence of factors on the level of performance indicators by comparing their values before and after changing the corresponding factor.

3. Trend analysis is used when studying the relative rates of growth and increase in indicators over a number of years to the level of the base year, i.e. when studying time series.

4. For univariate comparative analysis comparisons are made for one or more indicators of one object or several objects for one indicator.

5. Using multivariate comparative analysis The performance results of several enterprises (divisions) are compared across a wide range of indicators.

Characteristic

The essence of the comparison method is to compare data. This means that an analyst can take several values of one indicator or several absolute and relative indicators and compare them with each other. This method can be applied in all cases financial analysis: as in the process of formation comprehensive assessment financial condition and the effectiveness of the company, and when studying some aspect of the company's activities.

The method of comparing data in analysis is used, for example, when studying the dynamics and structure of a process or phenomenon, when determining the market position of a company, when identifying the direction of development of an enterprise, etc.

Examples of using the comparison method:

comparison of the value of some indicator over a period of time(comparison with the base value, with the value for previous period etc.). For example, if in 2016 the company sold 10 thousand units of products (Table 1), and in 2014 – 2 thousand units, then we can talk about an increase in sales volume over the period under study;

Table 1. Example of comparison of sales indicator

Index	Comparison with the base period	Comparison with the previous period

comparison of indicator value with competitors. For example, if a company sold 10 thousand units of products, and the main competitor sold only 5 thousand units, then we can conclude that high level competitiveness and market power of the company under study;
indicator comparison with industry average values. For example, if the average return on equity in the industry was 10%, and in the company under study - 18%, then we can conclude that there is an increase in the wealth of shareholders, high investment attractiveness and effective activities in the interests of the owners;
comparison of an indicator with some basis for determining the share. For example, if the amount of financial investments amounted to 600 million rubles, and the total amount of assets was 1000 million rubles, then using the comparison method in this case will allow us to come to the conclusion that financial activities play a key role for the company under study and form about 60% of all assets;
comparison with normative or reference values. For example, if standard indicator financial autonomy for enterprises of this group was 60%, and the value of the coefficient for the company under study is 20%, then we can talk about a high level financial risk and possible bankruptcy if access to the credit market is limited.

In general, you can compare any values of the same indicator or different indicators with each other if this allows you to form additional conclusions about the object under study.

Comparison with competitors and alternatives

The operating conditions in each industry or market segment are special and are formed under the influence of a large number of mesofactors. As a result, in different situations the maximum efficiency limit will vary. It cannot be said that the management of an enterprise that operates in a declining market will be less effective if its profitability indicator is lower than the identical indicator of an enterprise that operates in a growing market. Therefore, it is obvious that in order to form an unambiguous conclusion about the quality financial activities in the company, it is necessary to compare key indicators of profitability, liquidity, financial stability And business activity with meanings competitors.

Comparisons should be made with enterprises that operate in the closest possible conditions. The best option is a comparison with straight competitors that compete for the same customers and offer identical products and services. The same opportunities are available to these market participants, so the comparison financial ratios allows us to understand the management competence of each individual competitor.

The difficulty in solving this problem may be the lack of competitor data. In this case, you can compare the indicators with the industry average. The size of the enterprise should also be taken into account, because, for example, small companies have much more opportunities to adapt to new conditions and are more flexible in this regard.

In the absence of this data, it is possible to compare the company's financial performance with the average values in the economy, although the result obtained will not have the same value and will not allow accurate conclusions to be drawn about efficiency financial work in company.

Resources for obtaining the necessary information may include:

1. Official sites companies

2. Sites on which it is published financial statements for example, for potential investors

3. Data Federal service state statistics(online and offline)

4. Various data industry associations, associations, organizations

A special indicator is the return on equity. Its value indicates the efficiency of using the owners’ funds and allows you to get an answer to the question “Is it worth investing in the company?” If the owners could have received more profit by investing in alternative instruments, for example, a deposit in a commercial bank, then investing in the enterprise was a mistake. Therefore, in the case of using the return on equity indicator, it is worth comparing it with rates on deposits, the average return on the stock market, the return on investment funds comparable in risk, and with any other financial instruments in which the owners could invest.

Thus, accounting financial indicators competitors will improve the quality of the financial analysis of the enterprise, will allow us to formulate more accurate conclusions about the current situation and performance during the study period.

List of sources used

Thomas R. Robinson, International financial statement analysis / Wiley, 2008, 188 pp.

Kogdenko V.G., Economic analysis / Tutorial. - 2nd ed., revised. and additional - M.: Unity-Dana, 2011. - 399 p.

Buzyrev V.V., Nuzhina I.P. Analysis and diagnostics of financial and economic activities of a construction enterprise / Textbook. - M.: KnoRus, 2016. - 332 p.

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