Deficit/Surplus Analysis is a very important concept in the financial world. It has deep impact on a company’s growth and progress.
Though Deficit and Surplus go hand in hand, analysts in general refer to it as Deficit Analysis. The concept is very simple and straight forward. We usually have a Start Value or the Threshold and an End Value or the Actual. We are interested in finding the difference between these values.
Deficit Analysis can be used for a lot of situations. The most common are Calorie Intake and Nutrition Deficit, Revenue and Expenditure, Imports and Exports – Trade Deficit, Budget Deficit, Stock Volume – Break Value, Profit and Loss, Income and Expenses, Equity – Assets – Liabilities and list goes on.