... statements of the British American Tobacco will assist in establishing the success, failure and progress of the establishment. Trend Analysis : Trend analysis is useful in the analysis of company accounts over a series of years. The analysis is applied to a five -year or ten - year summaries supplied in company accounts. The technique gives a quick rough guide to specific trends in the individual items in the financial statements. The review of longer term historic trends identifies among others; ' an uneven past trading record implying competitive vulnerability; the impact of exceptional (or extraordinary) items - these are often due to major strategic errors of judgement or implementation in the past; and longer term trends in margins or operating (and costs) - illustrating shifts in both competitive and financial positions' (Ambrosini with Johnson and Scholes p. 48) However, it should be noted that the figures may ignore the effects ...

See this essay or coursework document in full right now