Question

What is meant by trend percentage analysis?

Answer 1

Trend percentages are important for comparing financial statements across multiple years. Long-term trends can assist financial analysts in identifying favorable or unfavorable tendencies. This aids future forecasting of numerous products. To calculate trend percentages, any year can be used as the ‘base year’. Each base year item is considered to be equal to 100, and the proportion of each year’s item is calculated accordingly.