An Analysis of Working Capital Trends

The present research paper was shown the calculation of trend analysis and Chi- Square test formula used by the researcher. Trend ratio or trend percentages are the primary tools for trend analysis of a firm. “The ratios of the magnitudes of a financial statement item in a series of statements to its magnitudes in one of the statement selected as the base may be called trend ratios”. They are, in fact, index numbers of the movements of the various financial factors of a business. The trend ratios computed by assigning the number 100 to times of the base year. The percentage of each item of successive year is calculated in relation to the base year.