TREND PERCENTAGE ANALYSIS - Accounts and Finance for Managers

The next important tools of analysis is trend percentage which plays significant role in analyzing the financial stature of the enterprise through base years’ performance ratio computation. This not only reveals the trend movement of the financial performance of the enterprise but also highlights the strengths and weaknesses of the enterprise

The following ratio is being used to compute the trend percentage=Current year *100/Base year

This trend ratio is being computed for every component for many number of years which not only facilitates comparison but also guides the firm to understand the trend path of the firm.


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