Since 2017 will serve as the base year, the denominator for all calculations will be the $150,000 in net sales from that year.
2017: 2018: 2019:
= 150,000 / 150,000 = 234,560 / 150,000 = 252,600 / 150,000
= 100% = 156.37% = 168.40%
2020: 2021:
= 270,800 / 150,000 = 282,880 / 150,000
= 180.53% = 188.59%
The upward trend in this trend's net sales is encouraging.
What is the trend for cost of goods sold?
2017: 2018: 2019:
= 67,000 / 67,000 = 106,440 / 67,000 = 115,280 / 67,000
= 100% = 158.87% = 172.06%
2020: 2021:
= 122,080 /67,000 = 128,200 / 67,000
= 182.21% = 191.34%
This is Unfavorable since the cost of the goods is an expense.
What is the trend for accounts receivable?
2017: 2018: 2019:
= 9,000 / 9,000 = 15,200/ 9,000 = 16,400 / 9,000
= 100% = 168.87% = 182.22%
2020: 2021:
= 17,300 / 9,000 = 18,100 / 9,000
= 192.22% = 201.11%
More Accounts Receivables are a negative because the business needs cash, so they should be reduced.
What is Trend Analysis?
Technical analysis's trend analysis method makes use of trend data that was recently seen in order to forecast future stock price movements. To predict the long-term direction of market sentiment, trend analysis makes use of previous data, such as price fluctuations and transaction volume.
To learn more about Trend Analysis
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