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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.
Updated on: 25-Jul-2020
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