answersLogoWhite

0

A trend ratio is a good graphical display of a specific period in time. For example (4 years) and the points on the graph are representative of the (ratio) points---representing each year. For example if you are looking at a trend ratio of working capital...you would hope the trend is going upward, because you always want working capital to trend upward or remain the same (if it was sufficient to begin with). If the ratio is trending downward for working capital you are having less money to work with that is not already spoken for by creditors previously. A graphical display is always easier to look at when you are comparing ratios. NOW take it a step further and have the Revenue Dollars on the X axis and the % of revenue dollars on the Y axis and do a simple mathematical formula and realize your % of change and your loos or gain of Working Capital Exposed Dollars.

User Avatar

Wiki User

14y ago

What else can I help you with?

Related Questions

How does trend analysis compliment ratio analysis?

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.


What is the difference between trend analysis and financial ratio analysis?

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.


When finding the slope of the trend line what does the slope mean about the data of the scatterplot?

The slope of the trend line is the rate of change of the data. It is the ratio of the change of the dependent variable to the rate of change of the independent variable. Slope represents the value of the correlation.


What statistical tools are used for financial research?

1.Commansize Balence sheet analysis 2.Comparative Balence sheet analysis 3.Trend analysis 4.Ratio Analysis


What has the author N Krishnaji written?

N. Krishnaji has written: 'Trend and seasonality in foodgrain prices' 'Poverty and sex ratio' -- subject(s): Rural poor, Sex ratio 'Some analytical characteristics of the distribution of land'


A potential creditor's judgment about granting credit would be most influenced by the potential customer's?

trend of acid-test ratio over the past three years


What is a burden ratio?

(Non-interest operating Expenditure - Non-interest operating income ) / Average Total Assets A bank with a low burden ratio is more better off. An increasing trend would show lack of burden bearing capacity


What is burden ratio?

(Non-interest operating Expenditure - Non-interest operating income ) / Average Total Assets A bank with a low burden ratio is more better off. An increasing trend would show lack of burden bearing capacity


What is a healthcare trend?

what is healthcare trend


What other trend is similar to periodic trend for electronegativity?

The trend for first ionization energy


What is the ratio of males to females in homicide detectives?

The ratio of males to females in homicide detectives varies depending on the department or agency. In general, it is common to see more males than females in this role, however, there is a growing trend of increasing female representation in law enforcement, including as homicide detectives.


What is the recent IT trend?

trend in IT in the recent times