Trend Analysis: Definition, Methods, and Importance in Financial Analysis
Trend analysis is a financial analysis method that examines financial data over time to identify patterns, trends, and future performance projections. It involves collecting and analyzing data from financial statements, such as income statements, balance sheets, and cash flow statements, over multiple periods. By studying this data, analysts can identify consistent patterns, fluctuations, and significant changes in financial performance. This method is crucial for investors, analysts, and management to assess a company’s historical performance and predict future growth or challenges.… Read more