Trend Analysis

Trend Analysis is a technique used to evaluate financial data over a specified period to identify patterns, trends, and growth rates. By examining historical data, such as revenues, expenses, and profits, trend analysis helps forecast future financial performance and identify significant company operations changes. This method involves comparing financial statement items year over year or quarter over quarter to detect consistent patterns or anomalies. Trend analysis aids in strategic planning, budgeting, and performance evaluation by providing insights into a company’s financial trajectory and potential future outcomes.