What is index-based analysis?

< 1 min read

Index-based analysis measures performance relative to a base value set to 100 (or another fixed number) to compare changes over time or across segments.
In one project, we set 2023 sales as index 100 and compared 2024 and 2025 performance against it.
If a region scored 120, it meant 20% growth over the baseline.
It simplifies comparison when absolute numbers vary significantly.
Indexing is useful for tracking price changes, market growth, or performance trends.
It normalizes data so different units or scales can be compared easily.
As a BA, I use it to present growth trends clearly to leadership.
Overall, index-based analysis highlights relative change rather than raw values.

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