qualitative analysis
| the analysis of a substance in order to ascertain the nature of its chemical constituents. |
Based on the Random House Dictionary, © Random House, Inc. 2009.
Cite This Source
| qualitative analysis n. The testing of a substance or mixture to determine its chemical constituents. |
Copyright © 2009 by Houghton Mifflin Company.
Published by Houghton Mifflin Company. All rights reserved.
Cite This Source
Qualitative Analysis
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 Commentary
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.
Related Links
Competitive Advantage Counts
Guide to Stock-Picking Strategies
See also: Fundamental Analysis, Quantitative Analysis, Soft Metrics, Valuation
Cite This Source
Main Entry: qualitative analysis
Function: noun
: chemical analysis designed to identify the components of a substance or mixture
Cite This Source
qualitative analysis qual·i·ta·tive analysis (kwŏl'ĭ-tā'tĭv)
n.
The testing of a substance or mixture to determine the characteristics of its chemical constituents.
Copyright © 2002, 2001, 1995 by Houghton Mifflin Company. Published by Houghton Mifflin Company.
Cite This Source
qualitative analysis (kwŏl'ĭ-tā'tĭv) Pronunciation Key
See under analysis. |
Copyright © 2002. Published by Houghton Mifflin. All rights reserved.
Cite This Source
Copyright © 2009, Dictionary.com, LLC. All rights reserved.
