Quantitative analysis books provide users with a variety of statistical or mathematical tools to assess data. The best tips for choosing these books include having a plan for selecting the book, looking for a book with the tools most applicable to the situation, and reviewing the tools and the book for validity. Textbooks provide a commonly used source for both basic and advanced quantitative tools. Consultants typically write books that provide more detailed information for real-world use applications.
Most companies have a planning session when looking for analytical tools. For example, when a company needs information on financial analysis, they look for quantitative analysis books that have the requisite information. In many cases, a company needs more than just an accounting book in order to complete financial analysis. Books should contain more information on techniques that measure both financial and nonfinancial data. Other types of information may be necessary depending on whether the analysis needs to include managerial and economic analysis as well.
Many types of techniques are available in terms of quantitative analysis. Individuals looking to select certain types of quantitative analysis books should focus on texts containing techniques that match the specific situation. These books are often in different groups, such as ratios, econometrics, corporate finance, or stock selection techniques. Each one contains separate methods, though the data necessary to complete each one may overlap in terms of required inputs. For example, the information needed to compute financial ratios may also be necessary to review corporate finance structure quantitatively.
Once an individual or company completes the first two steps for choosing quantitative analysis books, a review is necessary on the tools and authors of the books. As many variations can exist in quantitative analysis formulas, companies must ensure the books they use contain appropriate formulas. The authors who write the books should also be in question. Experienced individuals — whether academically or professionally qualified — tend to have better resources for writing these books. It is often up to the user to decide which author or book has the best qualifications for use in operations.
Like many analysis techniques in business, books and the formulas therein can only provide a small picture of a company’s operations. An owner or manager may need a physical viewing of operations or reports to make final business decisions. No book can take the place of human analysis in business.