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evaluate horizontal analysis
a series of finanucal statement data over time
trend analysis
predicts future direction based on past trends
what do trend analysis require?
at least 3 years of data
what does horizontal analysis highlights?
magnitude and signifiance of changes across periods
vertical analysis
expresses each finanical item as a % of a base amount
statement of profit OR loss
% of sales revenue
statement of financial position
% of total assets
what is vertical analysis useful for
comparing companies of different sizes and tracking patterns of change over time