What type of periods may be disregarded by trend analysis in some cases?

Trend analysis is a method used to evaluate financial data over time, helping analysts identify patterns, changes, or unusual fluctuations. In this context, atypical periods may be disregarded because they can skew the results of the analysis. Atypical periods refer to instances where data may have been influenced by extraordinary, non-recurring events such as major economic crises, natural disasters, or significant policy changes that do not reflect normal operating conditions.

Disregarding atypical periods allows for a clearer view of ongoing trends and performance that are more representative of regular operations. This practice helps ensure that the analysis produces more reliable and actionable insights, as it reduces the noise created by anomalies. By focusing on standard periods of activity, trend analysis can provide a more accurate picture of an entity's financial health and operational efficiency over time.