Procedures and techniques employed to perform an analysis of a situation or event. For example, an investor, in deciding whether to commit funds to a company, would engage in financial statement analysis by looking at trends in the accounts over the years (e.g., sales) and financial ratios.
The comparative amount refers to the financial figure reported in a previous period, which is used for comparison with the current period to assess performance and detect trends over time.
A measure of the deviation between actual profits of a company and trend profit. The higher the index, the greater the instability of a company's profitability.
A statistical procedure applied to time series data to eliminate the effect of seasonal variations, providing a more accurate representation of underlying trends and cyclical movements.
Trend analysis involves evaluating the performance of a company or industry over a period using accounting ratios to identify patterns and forecast future performance.
