Compare trend analysis and comparative analysis.

The major differences between trend analysis and comparative analysis are as follows −

Trend analysis

  • It is designed to look for trends in business performances.

  • It is analysed in horizontal methods.

  • It adopts line by line method.

  • It can be interpreted in absolute terms, as a percentages and in graphical forms.

  • It is useful to compare its results with previous years.

Comparative analysis

  • It is designed to compare changes from time to time.

  • It is analysed in horizontal or vertical methods.

  • It focusses on comparison with the help of financial information.

  • It uses ratio calculation.

  • It can be useful in comparing its results with previous financial years and also can be compared with similar industries.

Updated on: 25-Jul-2020


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