Which of the following is a potential outcome of conducting trend analysis?

Detecting problems or signs of good/poor management within the business

Trend analysis is a technique used to study the operational results and financial position of a business over a series of years. By observing the percentage changes over time in selected data, trend analysis provides valuable insights into the business's performance and potential issues. Trend analysis allows businesses to identify patterns and trends in their financial data. If certain ratios or financial indicators consistently show negative trends or are declining over the years, it may indicate underlying problems or inefficiencies within the organization. For example, a decreasing trend in profitability ratios could signal issues with cost management, pricing strategies, or declining sales. Similarly, a positive trend in key performance indicators might indicate effective management decisions and successful business strategies.