Trend Analysis Excel Template

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Let us take the example of a company DFG Inc. which is engaged in the manufacturing of customized
machine parts. The following income statement information is available for the last five years:

Particulars (millions) 2014 2015 2016 2017 2018

Net Sales $202.75 $195.89 $180.50 $220.80 $250.40
Gross Profit $83.58 $79.25 $80.30 $97.30 $118.45
Operating Income $42.50 $38.25 $37.50 $42.00 $52.95
Net Income $18.80 $18.50 $18.17 $19.90 $27.05

Trend Analysis is calculated using the change in amount formula given below
Change in Amount = Current Year Amount - Base Year Amount

Change In Amount
2014 2015 2016 2017 2018
(millions)
Net Sales NA -$6.86 -$15.39 $40.30 $29.60
Gross Profit NA -$4.33 $1.05 $17.00 $21.15
Operating Income NA -$4.25 -$0.75 $4.50 $10.95
Net Income NA -$0.30 -$0.33 $1.73 $7.15

Trend Analysis is calculated using the percentage change formula given below
Percentage Change = [(Current Year Amount - Base Year Amount) / Base Year Amount]

Percentage Change 2014 2015 2016 2017 2018

Net Sales NA -3.4% -7.9% 22.3% 13.4%
Gross Profit NA -5.2% 1.3% 21.2% 21.7%
Operating Income NA -10.0% -2.0% 12.0% 26.1%
Net Income NA -1.6% -1.8% 9.5% 35.9%

The graphical representation of the trend in each line item

Net Sales Gross Profit

Operating Income Net Income

2014 2015 2016 2017 2018

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Let us take the example of Apple Inc.’s income statement for the year 2018 to illustrate the concept
of trend analysis. The following three years’ information has been extracted from the income statement:

Particulars (millions) 2016 2017 2018

Net Sales $215,639 $229,234 $265,595
Gross Profit $84,263 $88,186 $101,839
Operating Income $60,024 $61,344 $70,898
Net Income $45,687 $48,351 $59,531

Trend Analysis is calculated using the change in amount formula given below
Change in Amount = Current Year Amount - Base Year Amount

Change In Amount
2016 2017 2018
(millions)
Net Sales NA $13,595 $36,361
Gross Profit NA $3,923 $13,653
Operating Income NA $1,320 $9,554
Net Income NA $2,664 $11,180

Trend Analysis is calculated using the percentage change formula given below
Percentage Change = [(Current Year Amount - Base Year Amount) / Base Year Amount]

Percentage Change 2016 2017 2018

Net Sales NA 5.1% 15.9%
Gross Profit NA 3.9% 15.5%
Operating Income NA 1.9% 15.6%
Net Income NA 4.5% 23.1%

Net Sales Gross Profit Operating Income Net Income

2016 2017 2018