The type of business that and industry that I am assuming for my analysis is in the energy industry and the company is a power plant generating electricity. In simple terms, trend analysis allows you to predict what's going to happen, based on what's already happened. Trend analysis can improve your business by helping you identify areas with your organization that are doing well, as well as areas that are not doing well. With trend analysis, we can check if there are instances wherein a certain performance dropped in the past and from there, we can check what caused the dropped. We can then match this to the current performance of the company to see if the drop is happening again and with the same cause. For example, for a power plant company, we have observed that profitability dropped in the past years due to increasing cost of coal. We will use this to observe the current trends to check if coal prices has been steadily rising and will cause another drop in profitability. With this, the company can start looking for ways to mitigate this even if it has not happened yet. Component analysis helps in financial analysis by