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.