Trend Analysis of ABC Corp's Revenue and Net Income

Very Hard Analysis Techniques Trend Analysis

ABC Corp. has reported its revenues and net income for the last five years as follows:

Year - Revenue - Net Income

2019 - $500,000 - $50,000

2020 - $550,000 - $60,000

2021 - $600,000 - $80,000

2022 - $700,000 - $90,000

2023 - $800,000 - $120,000

Using a trend analysis approach, which of the following statements best describes the revenue growth and net income performance of ABC Corp. over the analyzed period?

Revenue growth was constant over the period, while net income demonstrated significant volatility.

Both revenue and net income grew consistently year-over-year, with net income growing at a faster rate than revenue.

Revenue growth accelerated over the period, but net income grew at a decreasing rate relative to revenue.

Hint

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Correct3.7K

% Correct79%