Firm-specific financial indicators used in fundamental analysis top-down approach are:
A) interest rates.
B) consumer confidence.
C) return on assets.
D) business cycle.

Question

Quizplus · Accepted Answer

Return on assets is a firm-specific financial indicator that measures a company's profitability based on the amount of assets it uses to generate earnings. This information is essential when conducting fundamental analysis from a top-down approach, as it provides insight into a company's financial health and potential for future growth. The other options listed, such as interest rates, consumer confidence, and the business cycle, are macroeconomic factors that can impact the overall market but are not specific to an individual firm.

Firm-Specific Financial Indicators Used in Fundamental Analysis Top-Down Approach Are