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Monday, 12/06/2010 1:31:21 PM

Monday, December 06, 2010 1:31:21 PM

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Qualitative Analysis Defined...

What Does Qualitative Analysis Mean?

Securities analysis that uses subjective judgment based on nonquantifiable information, such as management expertise, industry cycles, strength of research and development, and labor relations. This type of analysis technique is different than quantitative analysis, which focuses on numbers. The two techniques, however, will often be used together.



Investopedia explains Qualitative Analysis

While most investors and analysts rely largely on quantitative measures, metrics such as the debt-to-equity and price-to-equity ratios, supplementing the analysis with qualitative analysis increases the insight into the company. Using qualitative factors will often give analysts an edge since key factors, such as management, does not show up in quantitative analysis.

To help you remember, qualitative = qualities of a company.

Source: http://www.investopedia.com/terms/q/qualitativeanalysis.asp

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