BZT Dictionary®

Q&A

"Q&A" is an abbreviation of "questions and answers". In connection with a presentation, it is usual to set aside time for a Q&A session at the end of the presentation.

In conjunction with a road show, where the management gives a presentation on the company, analysts and investors will have a chance to put questions to the CEO and the company's management. Those who are going to make the presentation, together with their financial advisor among others, will have gone through all of the questions which they think may be asked. They then prepare and practice the answers in a so-called "dry run", that is, a practice presentation. It is also decided in advance who will answer which questions. Another situation with a well-prepared Q&A session is in connection with media practice before a press conference and meetings with journalists.

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Quant

This is a quantitative analyst who uses mathematical and statistical models in her or his evaluations. A quant tries to understand developments with the help of complex models based on historical data, statistical measurements and research.

An "exchange quant" tries to predict the developments on the securities exchange and to utilize both key numbers and advanced mathematical models. Quantitative analyses seldom give a completely nuanced picture -- for that, supplementary qualitative analyses are also needed.

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Quick Assets Ratio

Quick Assets Ratio (QAR) is a measure of a company's short-term capacity to pay. Also called "Quick Ratio". The measure shows the company's capacity to pay short-term liabilities and is calculated:

QAR = (current assets - inventories)/short-term debts.

The higher the ratio the better the company's cash position. A ratio of two (2) thus means that the company has €2 available to cover €1 of short-term debts.

Inventories are excluded since they cannot quickly be converted to liquid assets. If a company is forced to sell inventory, it is assumed that this will be done at a lower value than the booked value.

Whether receivables should be included is also a subject for discussion, since the value of receivables depends on the customers' capacity to pay. If the company wants the customers to pay in cash, or earlier than when payment is due, it must be assumed that the payment will be made with a discount.

Quotation

A bid or an offer.

Quoted Company

The term for a listed company, that is, the company's shares can be bought and sold in a marketplace which is available to the general public.