Trend Analysis:
The financial statements may be analysed by computing trends of series of information. It
may be upward or downward directions which involve the percentage relationship of each
and every item of the statement with the common value of 100%. Trend analysis helps to
understand the trend relationship with various items, which appear in the financial
statements.
These percentages may also be taken as index number showing relative changes
in the financial information resulting with the various period of time. In this analysis, only
major items are considered for calculating the trend percentage.
The financial statements may be analysed by computing trends of series of information. It
may be upward or downward directions which involve the percentage relationship of each
and every item of the statement with the common value of 100%. Trend analysis helps to
understand the trend relationship with various items, which appear in the financial
statements.
[Post Image Courtesy of SamuiBlue at FreeDigitalPhotos.net]
These percentages may also be taken as index number showing relative changes
in the financial information resulting with the various period of time. In this analysis, only
major items are considered for calculating the trend percentage.
Trend Analysis Of Financial Statements
![Trend Analysis Of Financial Statements]()
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Tuesday, February 21, 2017
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