The method
Use this prompt by pasting it into your LLM chat window. Ideal for quickly assessing a company’s financial health based on provided statements. Provide relevant financial data for the best results. Tailor the prompt by adding industry benchmarks for a focused analysis.
The prompts
Prompt 1
Analyze the provided financial statements (Balance Sheet, Income Statement, and Cash Flow Statement) for [Company Name] for the year [Year]. Identify key trends, strengths, and weaknesses in the company's financial performance. Calculate relevant financial ratios such as profitability ratios (Gross Profit Margin, Net Profit Margin, Return on Equity), liquidity ratios (Current Ratio, Quick Ratio), and solvency ratios (Debt-to-Equity Ratio). Provide a summary of the overall financial health of the company, highlighting any potential areas of concern or opportunities for improvement. Also, compare the company's performance to industry averages and identify areas where the company excels or lags behind its peers. What are the top three actionable insights for improving the company's financial standing?
Prompt 2
You are a seasoned financial analyst. Your task is to evaluate [Company Name]'s financial performance based on the provided financial statements. Focus on identifying key performance indicators (KPIs) and their trends over the past [Number] years. Assess the company's ability to generate profits, manage its assets and liabilities, and generate cash flow. Analyze the company's capital structure and its impact on financial risk. Based on your analysis, provide a recommendation on whether to invest in the company, considering its financial strengths, weaknesses, opportunities, and threats (SWOT analysis). Include a detailed explanation of your reasoning, supported by relevant financial data and ratios. Finally, predict the company's future financial performance based on current trends and market conditions, highlighting potential risks and rewards for investors.