4. Trend Financial Analysis & Comparisons: Tracking Progress Over Time
Trend Analysis
Monitor key ratios over years. Spot early signs of trouble—like rising debt or declining margins.
Industry Benchmarking
Contextualize performance against similar companies. Industry averages serve as helpful reference points (Wikipedia).
Variance Analysis
Identify differences between planned and actual results and ask “why?” This drives corrective action and strategic pivots.
Year-over-Year Comparison
Track growth, seasonality, and anomalies—essential for planning and stakeholder reporting.
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