Answer:
Trend analysis can improve your business by helping you identify areas with your organisation that are doing well, as well as areas that are not doing well. In this way it provides valuable evidence to help inform better decision making around your longer-term strategy as well as ways to futureproof your business.
Explanation:
Trend analysis helps the analyst to make a proper comparison between the two or more firms over a period of time. It can also be compared with industry average. That is, it helps to understand the strength or weakness of a particular firm in comparison with other related firm in the industry.
Trend analysis is important when examining a firm's financial statements, because financial analysts can see how company assets have grown over time. ... By evaluating performance trends, corporate analysts also can tell whether an organization is adeptly managing its money and investing it wisely.
