Qualitative analysis

By | 2017-09-13T15:25:04+00:00 13th September 2017|

Qualitative analysis is the assessment of securities utilising subjective judgment based on unquantifiable information. Examples of the latter information include management expertise, industry cycles, strength of research and development, and labour relations. Qualitative analysis contrasts with quantitative analysis, which focuses on numbers that can be found within reports such as balance sheets. The two techniques will often be used together to examine a company’s operations and evaluate its potential as an investment opportunity.