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Analyse the following table and prepare a trend analysis (one of the techniques used in financialnstatement analysis)
| Year | Deposits | Advances | Profit |
|---|---|---|---|
| 1999 | 29585549 | 7829177 | 513011 |
| 2000 | 38345875 | 10115298 | 594580 |
| 2001 | 46005530 | 12800709 | 738225 |
| 2002 | 53668188 | 14288250 | 769516 |
| 2003 | 58786490 | 15799280 | 933680 |
| 2004 | 63372248 | 17036290 | 1181468 |
SOLUTION
The solution is as follows −
For Deposits
Make Base year as 1990 => 29585549 (100%)
| Year | Deposits | C | Trend percentage (C*100) |
|---|---|---|---|
| 1999 | 29585549(D1) | (D1/D1) = 1 | 100 |
| 2000 | 38345875(D2) | (D2/D1) = 1.296 | 129.6 |
| 2001 | 46005530(D3) | (D3/D1) = 1.555 | 155.5 |
| 2002 | 53668188(D4) | (D4/D1) = 1.814 | 181.4 |
| 2003 | 58786490(D5) | (D5/D1) = 1.987 | 198.7 |
| 2004 | 63372248(D6) | (D6/D1) = 2.142 | 214.2 |
For Advances − Make Base year as 1990 => 7829177 (100%)
| Year | Advances | C | Trend percentage (C*100) |
|---|---|---|---|
| 1999 | 7829177 (A1) | (A1/A1)=1 | 100 |
| 2000 | 10115298 (A2) | (A2/A1)= 1.292 | 129.2 |
| 2001 | 12800709 (A3) | (A3/A1)= 1.635 | 163.5 |
| 2002 | 14288250 (A4) | (A4/A1)= 1.825 | 182.5 |
| 2003 | 15799280 (A5) | (A5/A1)= 2.018 | 201.8 |
| 2004 | 17036290 (A6) | (A6/A1)= 2.176 | 217.6 |
For profits − Make base year as 1990 => 513011 (100%)
| Year | Profits | C | Trend percentage (C*100) |
|---|---|---|---|
| 1999 | 513011 (P1) | (P1/P1)= 1 | 100 |
| 2000 | 594580 (P2) | (P2/P1)= 1.159 | 115.9 |
| 2001 | 738225 (P3) | (P3/P1)= 1.439 | 143.9 |
| 2002 | 769516 (P4) | (P4/P1)= 1.500 | 150.0 |
| 2003 | 933680 (P5) | (P5/P1)= 1.820 | 182.0 |
| 2004 | 1181468 (P6) | (P6/P1)= 2.303 | 230.3 |
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