Quantitative analysis is a method of measuring financial success using a variety of techniques. Financial managers use quantitative analysis to reduce uncertainty or draw conclusions about a company, an investment or the economy. Some topics are used routinely by the financial community whereas others can be more abstract and are good for further study.
Time Value of Money (TVM)
Financial managers first learn about the time value of money (TVM) when learning quantitative financial techniques. Discounted cash flow analyzes how time degrades the value of money. For example, a car dealership may offer a 4 percent interest rate to buyers who wish to purchase a car with a five-year loan. If the car is worth $20,000, the buyer will end up paying $24,420 for the car. In essence, the dealership estimates that the $20,000 will be worth $4,420 less over the span of five years. A research topic on the time value of money might include the reasons time devalues money or the methods used to measure the time value of money.
Financial Statement Analysis
Investors, creditors and managers use financial statement analysis to measure the success of a company's financial goals. Ratio analysis is used to compare a company's financial measurements to those of another company, without having to worry about the difference in size. For example, a company that earns $2 million in net income compares favorably to a company that earns $5 million. This is because the first company's sales total $10 million, for a 20 percent income-to-sales ratio while the second company's sales totaled $75 million, meaning its income-to-sales ratio was only 13 percent. Research topics might include the different kinds of analysis or the benefits and drawbacks of ratio analysis.
Globalization of Publicly-Owned Companies
As trade barriers are eliminated and communication becomes simpler across the world, publicly-traded companies can no longer claim ownership from one country. Indeed, many companies headquartered in the United States are largely owned by investors across the globe. A research topic might detail how this globalization affects the stock market, the company's management and the individual investor. One study finds that large foreign ownership results in a less volatile stock price for these companies, making a large foreign ownership situation a stabilizing force.
Initial Public Offering (IPO)
In corporate finance, some privately-owned businesses hope to "go public" with an initial public offering (IPO). The reasons most often cited for going public are to generate funds for continued growth and owners' desire to "cash out." However, a company's business model must show that the company will continue to grow for the foreseeable future for a successful IPO. One research topic on an IPO might be an in-depth study of the differences between successful and unsuccessful IPOs.
- Photo Credit Comstock/Comstock/Getty Images
Software for Quantitative Analysis
Software packages for quantitative analysis range from the simple to the complicated, from the general to the specialized. Spreadsheet software is capable...
What Are the Benefits of Financial Statement Analysis?
The benefits of financial statement analysis are that it can help your business thrive. Through financial statement analysis you can determine and...
Limitations of Financial Statement Analysis
A company's financial statements include the income statement, balance sheet and cash flow statement. Investors, analysts and the media can review these...
Research Topics on Economics & Law
Economics is a social science discipline that deals with the manufacturing, allocation and consumption of merchandise and services. Law is the establishment...
List of Topics for Quantitative and Qualitative Research
Choosing the right topic can make difference between an arduous research experience and a rewarding one. Qualitative research explores topics through intensive...
Qualitative & Quantitative Tools
There are two kinds of research: qualitative and quantitative. Qualitative research relies on subjective judgment and cannot be quantified, but the research...
Finance Research Paper Topics
There are many topic angles from which to develop a finance research paper. Cultural anthropologists might focus on the role of finance...
Corporate Finance Research Topics
Corporate finance research topics cover a variety of fields and are usually taught in advanced programs such as master's and doctorate degree...
Publicly Traded Organic Food Companies
Purchasing organic food stocks is a natural choice for investors wishing to add eco-friendly ingredients to their portfolios. Green-chip investments can be...