Trend Analysis - Meaning, Formula, Calculation & Interpretations

In this tutorial, we will define Trend Analysis and explain it in detail using step-by-step calculations. After that, we will conduct trend analysis of the Colgate Case Study and interpret the results.

Download the Colgate Excel Model Ratio Analysis Template: We will use an excel template for the analysis. You can download the ratio analysis template from this link - https://www.wallstreetmojo.com/ratio-...

What is Trend Analysis?
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A trend analysis is the comparison of a company's financial statements in order to analyze market trends or future financials based on past performance results. It is an attempt to make the best decisions based on the analysis results.

What is the Importance of Trend Analysis?
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1. Accounting Application:
• It aids in the examination of financial statements for inaccuracies.
• It compares the overall growth of key financial statement line items from the base case over the years.

2. Technical Analysis Application:
• It assists investors in creating a trend line from historical stock prices, which can then be used to predict the future movement of the stock price.
• It aids in detecting long-term patterns such as a cup and handle pattern, head and shoulder pattern, or reverse head and shoulder pattern.

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https://www.wallstreetmojo.com/trend-...

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