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

Question

Quizplus · Accepted Answer

Trend analysis involves analyzing a company's financial ratios over time to identify patterns and trends in its financial performance. This type of analysis can help investors and analysts determine whether a company is improving or deteriorating financially over time. While sensitivity analysis, DuPont charts, and progress charts can be useful tools for examining a company's financial situation, they do not specifically involve the comparison of financial ratios over time. Ratio analysis involves comparing a company's financial ratios to those of other companies or industry norms, but does not necessarily involve looking at changes in a company's ratios over time.

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