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# Quantitative analysis

## Basicmethod

1.Ratioanalysismethod.Itisthebasicmethodoffinancialanalysisandthemainmethodofquantitativeanalysis.

2.Trendanalysismethod.Itcomparesthedataofrelevantfinancialindicatorsofthesameunitforseveralconsecutiveyearsandobservesitsgrowth.Throughtrendanalysis,theanalystcanunderstandthedevelopmentandchangetrendofthecompanyinaparticularaspect.

3.Structuralanalysismethod.Itconsidersthestatusofeachsub-projectintheoverallprojectbyanalyzingtheproportionorcompositionofeachsub-projectinthecorporatefinancialindicators.

4.Mutualcontrastmethod.Itrevealsthequantitativedifferencebetweeneconomicindicatorsthroughthemutualcomparisonofeconomicindicators.Itcanbeaverticalcomparisonbetweenthecurrentperiodandthepreviousperiod,ahorizontalcomparisonbetweendifferentcompaniesinthesameindustry,oracomparisonwithstandardvalues.Findthegapthroughcomparison.Thenanalyzethereasonsforthegap.

5.Mathematicalmodelmethod.Inmodernmanagementscience,mathematicalmodelsarewidelyused,especiallyineconomicforecastingandmanagement.Sinceexperimentalverificationcannotbecarriedout,mathematicalmodelsareusuallyusedtoanalyzeandpredictthepossibleresultsofeconomicdecision-making.

Theabovefivequantitativeanalysismethods,theratioanalysismethodisthefoundation,thetrendanalysis,structuralanalysisandcomparativeanalysismethodsareextensions,andthemathematicalmodelmethodrepresentsthedevelopmentdirectionofquantitativeanalysis.

## Qualitativeanalysis

Quantitativeanalysisisamethodofestablishingamathematicalmodelbasedonstatisticaldata,andusingthemathematicalmodeltocalculatethevariousindicatorsandvalues​​oftheanalysisobject.Qualitativeanalysisisamethodofmakingjudgmentsbasedontheanalyst'sintuitionandexperience,thepastandpresentcontinuityoftheanalysisobject,andthelatestinformationandmaterialstomakejudgmentsonthenature,characteristics,andlawofdevelopmentandchangeoftheanalysisobject.Incontrast,theformermethodismorescientific,butrequiresahigherdegreeofmathematicalknowledge,whilethelattermethodisrougher,butitismoresuitablewhenthedataisinsufficientortheanalyst’smathematicalfoundationisweak,andismoresuitableforgeneralInvestorsandeconomicworkers.However,itmustbepointedoutthatalthoughthetwoanalyticalmethodshavehighandlowrequirementsformathematicalknowledge,theycannotseparatequalitativeanalysisfromquantitativeanalysis.Infact,modernqualitativeanalysismethodsalsousemathematicaltoolsforcalculations,whilequantitativeanalysismustbebasedonqualitativepredictions.Thetwocomplementeachother.Qualitativeisaquantitativebasis,andquantificationisaqualitativeembodiment.Thetwoarecombinedandusedflexibly.Inordertoachievethebestresults.

Differentanalysismethodshavetheirowndifferentcharacteristicsandperformance,buttheyallhaveonethingincommon,thatis,theygenerallyanalyzeandexplaintheproblemthroughcomparison.Itisthroughthecomparisonofvariousindicatorsorthecomparisonofthesameindicatorsindifferentperiodsthatthequantity,quality,efficiency,consumption,developmentspeed,etc.canbereflectedandjudged.Providesolidandevidence-basedinformation.