Which of the following represents a common method for financial forecasting in businesses?

Historical trend analysis is considered a common method for financial forecasting in businesses because it involves examining past financial data and performance metrics to identify patterns and trends that can inform future expectations. By analyzing historical data, businesses can project future revenues, expenses, and overall financial performance based on established patterns.

This method is effective because it is grounded in real data, allowing organizations to make more informed predictions about their financial future. The process typically includes looking at financial statements over various time periods, understanding seasonal fluctuations, and incorporating economic indicators, which can all play a pivotal role in shaping financial forecasts.

Comparatively, the other options serve different functions in a business context. Competitive analysis focuses on examining competitors to understand their strengths and weaknesses but does not directly provide insights into the company's future financial performance. Expert review involves gathering opinions from experienced individuals but lacks the data-driven analysis that historical trend analysis provides. Market saturation assessment evaluates the extent to which a market is filled with competitors but again does not inherently involve forecasting financial trends based on past performance.