Question

How to interpret trend analysis of balance sheet?

Answer 1

Select the base year.For each line item, divide the amount in each nonbase year by the amount in the base year and multiply by 100.In the following example, 20W7 is the base year, so its percentages (see bottom half of the following table) are all 100.0. The percentages in the other years were calculated by dividing each amount in a particular year by the corresponding amount in the base year and multiply by 100.