Trend Ratio Analysis

Trend Ratio Analysis

The comparison of the successive values of each ratio for a single firm over a number of years.

Trend Ratio Analysis

The analysis of a financial ratio by comparing it to the same ratio in previous years. For example, a person may compare earnings in November 2009 to earnings in November 2008, November 2007 and November 2006. This helps analyze whether a company's financial state is becoming more or less healthy over time.