Define the Importance of Trend Analysis?

Can some one out in the Docsity world provide the details of the following question regarding the importance of Trend Analysis.
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Trend Analysis is the practice of collecting information and attempting to spot a pattern, or trend, in the information. In some fields of study, the term "trend analysis" has more formally defined meanings.
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"A strong’ersus existing rate will be compared with its past and anticipated foreseeable future ratios to ascertain whether the firm’s finances can be increasing or perhaps going down hill as time passes.Immediately after finishing this statement evaluation, this agency’S securities analyst will seek advice from administration to debate the ideas and potential customers, any risk places determined within the examination, and also achievable solutions."
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