Is the analysis of a financial statement comparing one firm with another.

Yes, the analysis of a financial statement comparing one firm with another is known as comparative financial statement analysis. This process involves comparing the financial statements of different companies to identify their financial strengths and weaknesses. Here are the steps involved:

1. Selection of Companies: Choose the companies that you want to compare. These companies should be in the same industry for the comparison to be meaningful.

2. Obtain Financial Statements: Get the financial statements of the selected companies. These can usually be found on the companies' websites or financial databases.

3. Identify Comparable Items: Identify the items in the financial statements that you want to compare. These could be revenues, expenses, assets, liabilities, or equity.

4. Calculate Ratios: Calculate financial ratios for each company. These ratios could include profitability ratios, liquidity ratios, efficiency ratios, and solvency ratios.

5. Compare Ratios: Compare the calculated ratios of the different companies. This will give you an idea of their relative financial strengths and weaknesses.

6. Interpret Results: Interpret the results of your comparison. This will involve understanding why certain companies have better or worse ratios than others.

7. Make Decisions: Based on your interpretation, make decisions. This could involve deciding which company to invest in, or identifying areas where a company could improve its financial performance.