A comparative income statement is a financial statement that compares the differences in profit earned during different periods of time. The statement lines up financial data with corresponding information from a prior time period, which allows the user to compare and analyze the information efficiently.
An income statement is a type of financial accounting statement prepared by companies to show their net income, or profit/loss, for a period. Typically, it lists the company's revenues and then subtracts its expenses in order to compute pre-tax and after-tax income. Using a comparative income statement allows managers and investors to analyze how company revenues and expenses have changed over time.