Comparison method (comparison) in economic analysis

Conditions for using the comparison method and scope

Comparison is an action by which the similarity and difference of the phenomena of objective reality is established. Using this method, the following main tasks are solved: identification of cause-and-effect relationships between phenomena; carrying out evidence or rebuttals; classification and systematization of phenomena.

The comparison can be qualitative (“it was warmer yesterday”) and quantitative (20 is always more than 10).

The comparison procedure in the analysis of the financial and economic activities of an enterprise includes several stages: selection of compared objects; selection of the type of comparison (dynamic, spatial, in relation to the planned values); selection of scales of comparison and the degree of significance of differences; selection of the number of features by which the comparison should be made; selection of the type of features, as well as the definition of criteria for their materiality and insignificance; selection of the comparison base.

When making a comparison, it is necessary that certain requirements are met:

• * the phenomena must be qualitatively comparable with each other, i.e. have something in common that serves as a basis for comparison (for example, the question "Which is longer, the road or the night?" is absurd, since these phenomena are incomparable). The possibility of comparison is provided by the homogeneity of the objects or phenomena included in the analysis;
• * it is necessary to observe the identity of the formation of the compared indicators (meaning the same way of organizing the collection of initial information, its generalization, methods of calculating indicators, etc.);
• * the objects being compared must belong to a set of phenomena that are at the same stage of development (for example, it is hardly possible to compare spring and autumn prices on the vegetable market, the yield of government bonds and junk or junk bonds, value indicators in dynamics under inflation, etc. );
• * compared phenomena must be measured in the same units of measurement;
• * objects or phenomena should be compared according to a comparable set of units (for example, if a trade organization acquired or, conversely, closed several of its stores, a comparison in time of the absolute indicators of its activities before and after such a reorganization, of course, cannot be considered eligible), with spatio-temporal comparisons, information on compared objects should be taken for the same date (instant data) or for the same time interval (interval data).

If the objects of analysis do not meet some of these requirements, in some cases the data can still be brought to a comparable form. There are several ways to do this: dividing into homogeneous groups according to quantitative or qualitative criteria, reducing to the same units of measurement, recalculating incomparable indicators using one algorithm, discounting, etc. the form of an effective rate. Another option to ensure comparability would be to bring the indicators to the same time base. So, for example, delacat when evaluating the effectiveness of investment projects with different implementation periods.

Comparison can be made according to one or several criteria. In the first case, the following methods and types of comparison are used:

comparison of the fact with the plan (analysis of deviations is based on this method);

comparison according to this criterion in dynamics, calculation of the average rate of growth (decrease) of the value of this indicator per unit of time;

comparison with the standard (standard, competing enterprise, etc.);

ranking using relative indicators (for example, ranking by profitability);

the use of special statistical indicators together with their characteristic values ​​(for example, the assessment of the risk of securities is carried out using the indicators of variation).

For a comprehensive assessment of the financial and economic activities of an enterprise, comparison by one criterion is clearly not enough.In a detailed analysis, economic entities are compared by several criteria at once (for example, by the level of profitability, turnover, sales growth, etc.). At the same time, not all indicators are equal - many of them are incommensurable or can act in different directions. In this case, a ranking method should be used. The most commonly used method is the sum of places and the taxonometric method. The ratings compiled using these methods provide a comprehensive assessment of the activities of economic entities, allowing to identify the best in a number of indicators.

Multivariate comparisons

Another important comparison issue is multidimensional comparison, i.e. comparison of economic values ​​by several indicators. Comparison of objects by a set of indicators is generally unacceptable. In some cases, it is possible by building a generalizing indicator.

In economic research, the comparison method has become widespread.

Comparison- this is an action by which the similarity and difference of the phenomena of objective reality is established.

The comparison procedure in economic analysis includes several stages:

• - selection of compared objects;
• - selection of the type of comparison;
• - selection of a comparison base (past period, plan, reference enterprise);
• - selection of the number of indicators by which objects will be compared.

There are the following methods of comparative analysis:

• 1. Horizontal analysis - it is used to determine the absolute and relative deviations of the actual level of the studied indicators from the baseline (planned, average, etc.);
• 2. Vertical analysis - it studies the structure of economic phenomena and processes, the ratio of parts of a whole to each other, 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 characterizes the trend of changes in the analyzed indicators for a number of years in dynamics in relation to its basic value (basic trend) or to the value of the previous year (chain trend);
• 4. Dynamic comparisons are used to study changes in the studied indicators over time;
• 5. Static comparisons are used to assess the level of indicators of one period for various economic entities;
• 6. In a one-dimensional comparative analysis, comparisons are made for one or more indicators of one object, or several objects are compared for one indicator;
• 7. With the help of multivariate comparative analysis, the results of the activities of several enterprises are compared for a wide range of indicators.

Depending on the comparison base, there are the following types of comparisons used in the economic analysis of the enterprise:

• 1. Comparison of actual levels of indicators with planned data. The purpose of this comparison is to monitor and assess the degree of implementation of the plan for a month, quarter or year.
• 2. Comparison of the actual levels of indicators with the approved norms and standards. Such comparisons are necessary to identify savings or overspending of resources for the production of products, assess the efficiency of their use in the production process, identify unused opportunities to increase production and reduce its cost.
• 3. Comparison of the level of indicators of the analyzed enterprise with the indicators of the activities of the leading enterprises of the industry, having the best results under the same initial conditions of management.

The purpose of this comparison is to assess the competitiveness of an enterprise and to identify reserves for improving the results of its activities.

• 4. Comparison of various options for management decisions, comparison of the indicators of the analyzed enterprise with the achievements of science and advanced experience of other enterprises or departments to search for reserves.
• 5. Comparison of the indicators of the analyzed economy with the average indicators for the district, zone, region to assess the results achieved and determine the unused reserves.
• 6. Comparison of parallel and time series to study the relationships of the studied indicators. For example, by simultaneously analyzing the dynamics of changes in the volume of gross output, fixed assets and capital productivity, one can substantiate the relationship between these indicators.
• 7. Comparison of various options for management decisions in order to choose the most optimal one
• 8. Comparison of performance results before and after changes in any factor when calculating the influence of factors and calculating reserves.

An important condition that must be observed when conducting a comparative analysis is to ensure the comparability of indicators; for this, the compared indicators must be brought to a single base.

The baseline should be comparable for all analyzed cases:

• - by the unity of volumetric, cost, quality, structural factors;
• - by the unity of intervals or points in time for which the compared indicators were calculated;
• - by the comparability of the initial production conditions (technical, natural, climatic);
• - by the unity of the methodology for calculating indicators and their composition;
• - for the equality of production effects;
• - for comparability of prices when calculating costs and effects.

Among the empirical methods for studying certain events, the method of comparative analysis is most often used. Thanks to him, common and different features (characteristics) of any phenomenon, the process under study at different stages of development (time, event, etc.) are revealed.

Definition

The comparative method is one of the dominant logical methods of cognition of objects, phenomena, events of the external world, which begins with the fact that analysts separate them from all objects and (or) establish their similarity with related objects and phenomena.

Through comparison, the general and different methodological approaches of scientific schools are determined, which study certain processes, compare certain criteria and categories. Moreover, only those phenomena (characteristics) are compared that have similar features and objective commonality within the framework of the selected scientific research. As a result, it is possible to find out the general, which was repeated in the phenomena and became a stepping stone on the way to identifying a number of patterns of the events under study.

Application

Comparative analysis is often used to study the dynamics of changes in certain processes, to search for differences and commonalities. Examples of practical use can be found in sociology, jurisprudence, political and economic analysis, science and culture.

It is well known that it is convenient to determine the dynamics of an enterprise's efficiency not with the help of abstract values, but by comparing either with other similar firms, or based on the company's statistics in an equilibrium period of time. For example, how has labor productivity (income, losses) changed in the current year relative to the same period of time in previous years, how competing enterprises have worked during this time.

The comparative analysis method is indispensable in sociology, public opinion research, and statistical analysis. Only by relying on the data of previous studies, it is possible to accurately identify the dynamics of changes in mood in society, promptly identify growing problems and respond to them in time. The comparative analysis is effective and indicative at all levels: from the individual family to the whole society, from the team to the collective of a large enterprise, from the municipal level to the state level.

Benchmarking types

The types of analysis depend on the methodology and the number of compared indicators. When tracking a certain phenomenon, you can rely on the data of the phenomenon itself, compare it with a similar one or with a set of phenomena. For example, when tracking the dynamics of a company's economic activity, one can rely on its own statistics for different time periods, compare it with a competing firm, or evaluate it in the context of the entire industry (a set of firms).

Classification

The types of analysis are divided into:

• Quantitative - analysis in terms of the quantitative presentation of characteristics.
• Qualitative - analysis of qualitative characteristics, properties.
• Retrospective - analysis of changes over time, their impact on current events.
• Applied - analyzes the practical activities of the structure under study.
• Research - used in analytical sciences.
• Descriptive - the analysis begins with the study of the structure of the phenomenon, then goes to its functions and purpose.
• General - Based on general systems theory.
• Structural - the general structure of the phenomenon is analyzed.
• Microsystem - a specific system is being investigated.
• Macrosystem - the role of a specific system in a set of related systems is analyzed.
• Vital - the development of the system is analyzed, its main stages are determined.
• Genetic - used in the analysis of genetic systems, inheritance mechanisms.
• Other types.

Law research methodology

Comparative analysis of the systems of jurisprudence of different countries allows developing countries to adopt effectively proven management methods, improve legislation, the structure of the administrative system.

The study of the theoretical heritage indicates that the development of the theory of law in one country outside the context of world history and the achievements of legal thought in other countries is impossible and leads to a narrow limited approach in defining the problems of law. It is this, in fact, that determines the regularity of the transnational nature of legal science, not excluding the socio-political functions of the jurisprudence of a particular state. For example, even Soviet legal science was not an isolated system, but a part of a dialectically integral world jurisprudence.

Features of the application of the technique

The legal method of comparative analysis is, first of all, the comparison of comparative studies, that is, the analysis of similarities. A number of respected researchers note two fundamental conditions for the correct application of the comparative method:

• You should not limit yourself to comparing peoples of the same race or religion.
• You can only compare legislation or legal systems that are at the same level of social development.

Why? The comparative history of law should not be limited to a simple comparison of the studied legal systems only because they coexist simultaneously in time or geographically close. Indeed, in law there is no room for experiments - for every decision aimed at creating or realizing law, there are the destinies and interests of citizens, the economy, and the state. The law should be as perfect and systemic as possible. That is why, instead of an experiment, comparative legal studies are used, which will indicate important options for decisions, warn against making decisions that are outdated or ineffective in current conditions.

Enterprise development forecast

The declared entry of the country into the world community in the context of the transition of the economies of the world's leading countries to innovative development forces domestic producers to modernize production. Delay threatens a systemic separation from developed countries and transformation into a raw material appendage, a donor of cheap labor. Realizing this, leading domestic enterprises are trying to find their place in the world market, relying on new developments.

However, the search for ideas for innovative developments is mainly carried out in a purely intuitive way, while the chances of success are small and more dependent on subjective factors. At the same time, there is a comparative analysis method. It allows you to:

• Conduct a targeted search for ideas for new products, technologies for their manufacture, management methods.
• Select the most appropriate innovation ideas, thereby increasing the investors' chances of success.
• Lay the foundations for the transition to innovative development.

Business analysis

The comparative method is vital for effective management. How else can you track whether your firm is performing better or worse? What is its place in the market? How are competitors developing? Only when comparing with the previous time periods of one's own activity and, if possible, competing structures, can one make strategic development plans.

When exploring large amounts of data, a benchmarking table is helpful. It allows you to visually structure indicators. An example of the simplest comparative table (coefficients are taken conditionally):

Application in political science

The period of relatively rapid political changes that the world entered at the beginning of the 21st century creates an increased need for their scientific understanding. In the framework of studies of the current stage of political transformations, a comparative analysis plan is used. It must meet three essential conditions:

• Operating with a large amount of empirical data.
• Ensuring the maximum autonomy of the researcher from value-based and ideologically colored approaches.
• Allocation of special features and general trends of the studied processes.

The comparative analysis method is best suited for this. It guarantees the relevance, scientific and practical value of the study of a significant part of the modern methodological tools of political science. Comparative analysis can also be valuable when considering political reform projects. Studying the experience of neighbors on the planet helps to more accurately assess their advantages and disadvantages. Accordingly, the attention of comparative political science in recent decades is mainly focused on the search for models of administrative and public administration, given the dynamics of reforms that have been carried out in Western and post-socialist countries over the past decade.

Comparison is the most important method of analysis for assessing the progress and results of an organization's activities. The application of the comparison method is the first step in any analytical study. In the process of analysis, the actual results of the organization's activities in the analyzed period are compared with similar indicators in various areas.

The main areas of comparison are:

comparison with planned indicators, as a result of which the degree of plan fulfillment for certain indicators is determined, the reasons for deviations from planned targets;

comparison with the indicators of previous periods gives an idea of ​​the trends in indicators, characterizes these changes in dynamics over a number of periods;

comparing the performance of an organization with the performance of related organizations allows us to determine its competitiveness.

A necessary condition for the correctness of the conclusions obtained on the basis of a comparison of indicators is to ensure their comparability, i.e. their homogeneity, one-quality. Comparability of indicators can be achieved:

the use of comparable assessments of factors when comparing volumetric (quantitative) indicators. For example, when comparing the volumes of output for individual years, they are expressed in the same comparable prices;

excluding the influence of the quantitative factor when comparing qualitative indicators, i.e. recalculation of the compared quality indicators for the same quantity. So, determining the fulfillment of the plan at the cost of marketable products, the actual and planned cost of the same actual volume of manufactured goods is compared;

the use of a unified methodology for calculating the compared indicators;

bringing the compared indicators to a homogeneous composition. So, the comparison of the cost of individual types of products by year can be carried out only if it is calculated for the same elements and items of expenditure;

¦ the use of relative indicators, i.e.

Dynamics indicators (growth rates, growth rates, etc.).

In order to objectively assess the results achieved by an organization, relative values ​​must be used in conjunction with absolute values. Numerically, the same relative indicators may have different meanings depending on the differences in absolute indicators, on the basis of which these relative values ​​are obtained. Therefore, in the process of analysis, the absolute value of one percent of the increase is determined by dividing the absolute increase in the indicator by the growth rate. The comparison process determines:

a) absolute growth of the indicator

where P1, Po - current and base value of the indicator

b) the relative increase in the indicator

5P = (DP / Po) * 100%;

c) indicator index:

d) the absolute value of one percent of the increase in the indicator

Po / o = DP / 5P.? For example, if the volume of production of one organization in the reporting year amounted to 11.0 million rubles, and in the previous year 10.5 million rubles, and in another organization, these volumes are respectively equal to 35.0 million rubles. and 33.4 million rubles, then the growth rates of the volume of production in both the first and the second organizations are the same - 104.8% (11.0 / 10.5 * 100 and 35.0 / 33.4 * 100). However, the absolute increase in the volume of production in the first organization amounted to 0.5 million rubles. (11.0 - 10.5), and in the second - 1.6 million rubles. (35.0-33.4), therefore, the absolute value of one percent of growth in the first organization is 104.2 thousand rubles. (500: 4.8), and in the second 333.3 thousand rubles. (1600: 4.8). Thus, the significance (weight) of one percent of the increase in production in the second organization is 3.2 times higher than in the first. Consequently, an isolated absolute or relative indicator can very one-sidedly reflect the process under study, while the consideration of relative and absolute indicators in their unity eliminates such one-sidedness.

Comparison is one of the ways in which a person began to recognize the environment. In modern reality, we use this method at every step, at times automatically, unconsciously. Emphasizing its importance, one can refer to the saying: "Everything is cognized in comparison." It was also widely used in the study of economic phenomena.

The aim of the work is to define the concept of comparison, to identify the types and types of comparison, to analyze the role of comparison in the economic activities of enterprises.

Great scientists of the social, humanitarian, technical and natural spheres of sciences used the comparison method in their works. Among economists, one can name such outstanding personalities: A. Smith, J. Schumpeter, R. Cantillon, K. Marx and F. Engels, etc. Among the Ukrainians: V. Timoshenko, V. Antonovich, M. Dragomanov, M. Starytsky and etc.

Comparison is a scientific method of cognition, in the process of its studied phenomena, objects are compared with those already known, studied earlier, in order to determine common features or differences between them.

Comparison is not identical to experiment and its weaker analogue, the statistical method, but the logic of comparative analysis is to a certain extent comparable to the logic of experimental science.

An analogy with the experimental method is drawn by Charles Ragin, pointing to two types of comparative studies: quantitative, focused on the study of variances of signs of phenomena, qualitative, focused on the comparison of categorical variables. In both cases, there is an experimental logic of limiting conditions and a search for causal relationships between variables (in quantitative analysis, there are also correlation ones).

The comparative analysis methodology includes the entire arsenal of methods and techniques of economic analysis, but a scientifically grounded grouping of enterprises, organizations, firms, countries and the choice of a comparison base for them are of particular importance.

A prerequisite in the method of comparison is the comparability of indicators in terms of structure and conditions of their formation. The main conditions for comparability: compliance with the qualitative homogeneity of the compared indicators, the unity of the methodology for their calculation; the use of uniform product meters, the same geographical conditions and location in relation to suppliers of materials and equipment and consumers of finished products; the same number of working days in the compared periods

In economic analysis, comparison is used to solve all its problems as the main or auxiliary method. In practice, this method is used in such cases: comparison of planned and actual indicators to assess the degree of implementation of the plan; comparison of actual indicators with normative ones allows you to control costs and promotes the introduction of resource-saving technologies; comparison of actual indicators with indicators of previous years - to determine trends in the development of economic processes; comparison of the indicators of the analyzed enterprise with the achievements of science and advanced experience of other enterprises or departments is necessary to search for reserves; comparison of various options for management decisions in order to choose the most optimal one; comparison of performance results before and after a change in any factor is used when calculating the influence of factors and calculating reserves, etc.

The comparison procedure in the analysis of the financial and economic activities of an enterprise includes several stages:

1. selection of compared objects;

2. selection of the type of comparison (dynamic, spatial, in relation to the planned values);

3. choice of scales of comparison and the degree of significance of differences;

4. selection of the number of features by which the comparison should be made;

5. selection of the type of features, as well as the definition of criteria for their materiality and insignificance;

6. selection of the comparison base.

In economic analysis, the following types of comparative analysis are distinguished: horizontal (time), vertical (structural), trend, one-dimensional and multivariate comparative analyzes.

Summing up the above, we can say that a simple calculation of the results does not give a complete description of the indicator or the object of research, the most important characteristic is the comparison of indicators with each other. Therefore, further research on the topic of this work is important and applicable in all spheres of economic and other spheres of human activity.

Literature:

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3. Muravyov A.I. The theory of economic analysis: problems and solutions. - M .: Finance and statistics, 2001 .-- 144 p.