An analysis of a firm's financial ratios over time used to determine the improvement or deterioration in its financial situation is called _____.
A)sensitivity analysis
B)the DuPont chart
C)ratio analysis
D)comparative (benchmarking) analysis
E)trend analysis

Question

An analysis of a firm's financial ratios over time used to determine the improvement or deterioration in its financial situation is called _____. 
A)sensitivity analysis
B)the DuPont chart
C)ratio analysis
D)comparative (benchmarking) analysis
E)trend analysis

Quizplus · Accepted Answer

Trend analysis involves examining a firm's financial ratios over time to identify patterns, improvements, or deteriorations in its financial situation. This method helps in understanding how the firm's financial health is changing over periods.

An Analysis of a Firm's Financial Ratios Over Time Used