When the present financial ratios of a firm are compared with similar ratios for another firm in the same industry, it is called trend analysis.

Name: When the present financial ratios of a firm are compared with similar ratios for another firm in the same industry, it is called trend analysis.
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Trend analysis involves comparing a company's financial ratios over time to identify patterns and trends. Comparing ratios of one company to another in the same industry is called benchmarking analysis.

When the Present Financial Ratios of a Firm Are Compared