Difference between revisions of "Trend analysis"
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According to [[College Accounting: A Practical Approach by Slater (13th edition)]], | According to [[College Accounting: A Practical Approach by Slater (13th edition)]], | ||
:[[Trend analysis]]. A type of horizontal analysis that deals with percentage changes in items on the financial reports for several years. This analysis uses a base year to calculate the percentage change of each item. | :[[Trend analysis]]. A type of horizontal analysis that deals with percentage changes in items on the financial reports for several years. This analysis uses a base year to calculate the percentage change of each item. | ||
| + | According to [[Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition)]], | ||
| + | :[[Trend analysis]]. An analysis of a firm's financial ratios over time. It is used to estimate the likelihood of improvement or deterioration in its financial situation. | ||
==Related concepts== | ==Related concepts== | ||
Revision as of 13:48, 28 October 2019
Trend analysis is a type of horizontal analysis that deals with percentage changes in items on the financial reports for several years. This analysis uses a base year to calculate the percentage change of each item.
Definitions
According to College Accounting: A Practical Approach by Slater (13th edition),
- Trend analysis. A type of horizontal analysis that deals with percentage changes in items on the financial reports for several years. This analysis uses a base year to calculate the percentage change of each item.
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Trend analysis. An analysis of a firm's financial ratios over time. It is used to estimate the likelihood of improvement or deterioration in its financial situation.
Related concepts
- Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.
