Question

Discuss the steps of performing trend analysis on the financial statements of any
company.
Download the Balance sheet of any company of your interest from the open sources.
Perform the comparative analysis of that Balance sheet and discuss your findings.
Hint to attempt: to choose a company from open source- type the name of the company
in the web page.
Download the annual report as available, latest. Identify the relevant data, and then
perform comparative analysis of Balance Sheet of the company

Answer 1

Answer:

I hope the answer will be beneficial for you

Explanation:

The key metrics we look at are:

Cost of Goods Sold (COGS) as a percent of revenue

Gross profit as a percent of revenue

Depreciation as a percent of revenue

Selling General & Administrative (SG&A) as a percent of revenue

Interest as a percent of revenue

Earnings Before Tax (EBT) as a percent of revenue

Tax as a percent of revenue

Net earnings as a percent of revenue

Answer 2

Trend Analysis evaluates an organization's financial statement over some time.

• This period may be measured in months, quarters, or years depending on circumstances.
• The goal is to calculate and analyze the amount of change and percent change from one period to another.
• The first step is to identify which data trend you want to target.
• Trend is analyzed within a given framework, the trend should be set up monthly, yearly, or quarterly.
• Based on the pattern, the period you choose the specific data you need.
• After choosing the data you need to gather the data.
• With your data in your hand, you should chart this data with trending charts.
• Identify a trend that is relatively simple whether you see a pattern or not.