Which analysis calculates the percentage change from one year to the next?

The analysis that calculates the percentage change from one year to the next is linear trend analysis. This type of analysis is particularly useful for assessing patterns over time by measuring the rate of change between consecutive periods. It involves taking the difference in values from one year to the next, dividing that difference by the value from the previous year, and then multiplying by 100 to find the percentage change.

The other choices do not focus on year-over-year percentage changes in the same way. Comparative analysis typically compares financial data from multiple periods or against benchmarks but may not specifically address percentage changes. Vertical analysis assesses each line item in financial statements as a percentage of a base figure, like total sales or total assets, which does not translate to annual change. Base year analysis evaluates financial performance by comparing it against the financial data of a selected base year, but it does not calculate the specific annual percentage changes. Therefore, linear trend analysis is uniquely suited to providing insights into how figures evolve annually.