qualitative analysis


Definition of qualitative analysis

: chemical analysis designed to identify the components of a substance or mixture

Examples of qualitative analysis in a Sentence

Recent Examples on the Web

In 2011, Morningstar introduced a new rating system, analyst ratings, in which the firm’s analysts provide a more qualitative analysis of funds. Tom Mcginty, WSJ, "How The Wall Street Journal Did Its Analysis of Morningstar Ratings," 25 Oct. 2017

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'qualitative analysis.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

First Known Use of qualitative analysis

1842, in the meaning defined above

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Statistics for qualitative analysis

Last Updated

12 Sep 2019

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The first known use of qualitative analysis was in 1842

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More Definitions for qualitative analysis

qualitative analysis


Financial Definition of qualitative analysis

What It Is

Qualitative analysis is the use of non-quantifiable methods to evaluate investment or business opportunities and make decisions. This is different from quantitative analysis, which relies on a company's income statement, balance sheet and other quantifiable metrics.

How It Works

Qualitative analysis is often used to gain insight into a company and an edge over analysts who only use quantitative measures. For example, let’s assume you are considering whether to purchase shares of Company XYZ. If you were to consider the expertise of the company’s management, the taste of the product, the look of the packaging, the company’s competitive advantages, or employee morale, you would be performing qualitative analysis.

Why It Matters

Qualitative analysis, of which Warren Buffett is a notable practitioner, is the foundation of a broad array of investment and financial devision-making methods. However, it is not the only way to determine whether an investment is worthwhile. Many investors also perform quantitative analysis of companies and investments, whereby things such as the company’s cost of capital percentage change in sales over time, or trends in net income as a percentage of sales or other measures are considered.

Sound business judgment often involves incorporating both analytical methods, although there is considerable controversy about how much weight aMichael Milkenh method should receive when making particular business or investment decisions.

Source: Investing Answers

qualitative analysis


Medical Definition of qualitative analysis

: chemical analysis designed to identify the components of a substance or mixture

Comments on qualitative analysis

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