Preparing a Trend Analysis of Financial Data скачать в хорошем качестве

Preparing a Trend Analysis of Financial Data

We use horizontal analysis to calculate and report the amount and percent change in various balance sheet and income statement items from one operating period to another. When these percentage changes are tracked for a number of successive periods, it is known as trend analysis. Trend analysis is the use of index numbers to calculate percentage changes of a company’s financial data for several successive operating periods. Trend analysis introduces the element of time into financial analysis. Whereas data from one statement gives a firm’s financial position at a given point in time, trend analysis provides a dynamic picture of the firm by showing its financial direction over a period of time.