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    Trend Analysis and Common-Sized Financial Statements

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    Why is trend just as important if not more important than information that pertains to only one year?

    What is meant by "presentation of financial statement information in common-size amounts rather than dollar amounts?" Why is this type of presentation sometimes more meaningful than use of actual dollar amounts?

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    https://brainmass.com/business/financial-statements/450230

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    Why is trend just as important if not more important than information that pertains to only one year?

    Even the largest corporation is not immune to one-time traumas. A corporation's earnings can unexpectedly drop due to a natural disaster at the location of its largest plants (such as the losses which Toyota experienced when its main plant in Japan was damaged by a tsunami) or can unexpectedly rise due to a supply/demand imbalance for its raw materials or labor. It is not unusual for a company to perform particularly well or poorly in one year ...

    $2.19

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