Fundamental analysis, in accounting and finance, is the analysis of a business's
financial statements (usually to analyze the business's
assets,
liabilities, and
earnings); health; and its
competitors and
markets. When applied to
futures and
forex, it focuses on the overall state of the economy, and considers factors including interest rates, production, earnings, employment, GDP, housing, manufacturing and management. When analyzing a stock, futures contract, or currency using fundamental analysis there are two basic approaches one can use: bottom up analysis and top down analysis. The terms are used to distinguish such analysis from other types of
investment analysis, such as
quantitative and
technical.