Financial Comparison Template

Business organizations have to deal with different clients and investors in order to arrange finances for their company. It is not easy to persuade a potential investor to invest in your business because they want proper evaluation of the financial status of the organization.  Accurate and honest communication to the strengths and weaknesses of the company is an easy way to convince investor. Financial comparison report is an important document that will help you to grab the interest of the investors as this report contains the actual financial health of the company. Financial comparison report will provide better comparison of costs and benefits. You can divide your report in different sections to provide detail comparison of financial status of the company. Financial comparison should portray clear picture of the business health financially for the satisfaction of potential partners.

Fundamentals of Financial Comparison Report

Financial comparison report should contain following fundamental points to have a comprehensive comparison of the company:

Investment Notion

Bullish and bearish stance of the company is easy to uncover in the section of investment notion. It can be included at the top portion of report for the convenience of investors. You can cover the pros and cons of key investments. Financial statements can be used to design this section because sales and profit growth trends as well as cash flows, debt levels and liquidity can be compared via financial statements of the company. The most important part of the financial comparison should be past trends that will forecast the performance of the organization. Past and present trends can help you to get the idea about future trends.


It is the most important part of the financial comparison and it is based on the valuation of the self-governing value for the stock and market price comparison. Usually, three primary valuation techniques are being used for the valuation of stock and assets of the company. Usually, estimation of prospect cash flows can be used for the valuation of company’s assets. Discounted cash flow analysis is another way for this process. Financial comparison analysis is essential to get the book value of all assets and stock in the market.

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Major Risks

This point cannot be ignored while financial comparison because goodwill and patent protection of the company is greatly based on its valuation. You have to discuss important risks to your business from market, climate conditions, rivals or any other reasons. These should be discussed with proper solution in the report to deal with all bad situations. Corporate governance, political environment and different other related factors can prove potential risk or benefits for your company according to circum stances so do not forget to mention them in the financial comparison.

Financial comparison is really important for clients, investors, income tax departments and auditors because it is a better tool to measure the performance of the organization. This comparison requires proper research and details financial statements of the company otherwise you cannot design a perfect financial comparison report for the convenience of potential investors.

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