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Good morning! I am trying to do a trend analysis on Financial performance for 4 years (2019-2016) for a company. Should the base year remain
Good morning! I am trying to do a trend analysis on Financial performance for 4 years (2019-2016) for a company.
Should the base year remain the same for all four years (ie: 2016) - or should the base year be the previous year's figures?. (please advise - the two options are below)
Option 1: Base Year remains the same | ||||
2019 | 2018 | 2017 | 2016 | |
% of change | =(2019-2016)/2016 | =(2018-2016)/2016 | =(2017-2016)/2016 | Base Year |
Option 2: Base Year depends on previous Year | ||||
2019 | 2018 | 2017 | 2016 | |
% of change | =(2019-2018)/2018 | =(2018-2017)/2017 | =(2017-2016)/2016 | Base Year |
Thank you!
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