Ratio analysis shows how a company performed at a given time. Trend analysis shows how a company performed over time and whether the company has done better, worse, or stayed the same.
Trend analysis usually measures monetary changes that fall into a certain period of time line-by-line in finances. Ratio analysis uses math to figure out percentages or indicators from ratios in finances.
1.Commansize Balence sheet analysis 2.Comparative Balence sheet analysis 3.Trend analysis 4.Ratio Analysis
what is ratio analysis
by trend analysis we can predict the future task. we can know are we progressing or declining.
Trend signifies future possibilities . The trend analysis acquaint us with the profitability and the short term as well as long term liquidity of business
scope of ratio analysis
The term trend analysis is the gathering of information in order to predict a trend. It is based on the idea that what has happened in the past will have an influence on what will happen in the future.
Worksite analysis deals with routine inspections, industrial hygiene, and trend analysis
Indicate the usefulness and limitations in using ratios to do a trend analysis Sheryl Smith
Trend analysis is the study of data wherein data is looked at closely to see if any patterns exist within the set. It is important because it could clue someone in on what is happening within their data. For instance, trend analysis is used to determine the most popular products in a store at a given time.
Ratio Analysis = Current Asset / Current Liabilities
The past repeats itself. Trend analysis uses historical patterns to forecast the future.