Which analysis technique focuses on comparing the current year's financial data with previous years?

The correct response is the technique that specifically focuses on comparing the current year's financial data against financial data from previous years. This method is designed to identify trends over time, allowing businesses to assess financial performance and make informed decisions. By examining financial statements from one period to another, analysts can determine whether specific items are increasing or decreasing, as well as the overall growth or decline of the company's financial position.

Other analysis techniques serve different purposes. For instance, trend analysis is broader and focuses on identifying patterns over time rather than emphasizing direct year-to-year comparisons. Vertical analysis, on the other hand, presents each item on a financial statement as a percentage of a base figure (such as total sales or total assets) for a specific period, making it less suited for tracking performance over multiple years. Variance analysis evaluates differences between planned financial outcomes and actual results, but it does not inherently focus on historical comparisons in the manner specified in the question.

Therefore, the method that effectively captures the comparison of current and previous financial data is the one recognized in the answer.