What Is Qualitative Analysis?

The qualitative analysis relies on subjective judgment to assess a company’s worth or prospects based on non-quantifiable data such as managerial competence, industry cycles, R&D strength, and labor relations.
Quantitative analysis, on the other hand, is concerned with figures seen in reports such as balance sheets. The two approaches, on the other hand, are frequently used to study a company’s operations and assess its investment prospects.

Qualitative analysis is a securities analysis that uses subjective judgment based on unquantifiable information, such as management expertise, industry cycles, strength of research and development, and labor relations.

Qualitative analysis contrasts with quantitative analysis, which focuses on numbers that can be found on reports such as balance sheets. The two techniques, however, will often be used together in order to examine a company’s operations and evaluate its potential as an investment opportunity.