Advantages:

1, the comparative foundation is reliable, and the historical index is the level reached by the enterprise. By comparison, we can observe the changing trend of enterprise's solvency;

2, with strong comparability, easy to find problems.

Disadvantages:

1, historical indicators can only represent the actual level in the past, but not the reasonable level. Therefore, historical comparative analysis mainly reveals differences, analyzes reasons and infers trends through comparison;

2. After the business environment changes, the comparability of historical comparison will also weaken.

Historical comparative analysis is an analytical method to judge the changing trend of enterprise financial situation by analyzing the changes in historical periods.