The method
Use this prompt to analyze financial statements. Input the company name, the statements (Balance Sheet, Income Statement, Cash Flow Statement), and specify ratios or areas of concern. Use on ChatGPT or Gemini for best results. Ideal for quick insights.
The prompts
Prompt 1
Analyze the financial statements (Balance Sheet, Income Statement, and Cash Flow Statement) for [Company Name] for the years [Year 1] and [Year 2]. Identify key trends in profitability, liquidity, and solvency. Calculate and interpret the following ratios: Current Ratio, Debt-to-Equity Ratio, Return on Equity (ROE), and Profit Margin. Highlight any areas of concern or potential red flags based on your analysis. Provide a summary of your findings, including recommendations for further investigation.
Prompt 2
Review the provided financial statements of [Company Name] focusing specifically on [Specific Area of Concern, e.g., increasing debt levels or declining revenue growth]. Compare the performance against industry benchmarks or competitors (if available, provide competitor data). Assess the sustainability of current trends and estimate the potential impact on the company's future financial performance. Offer actionable insights and recommendations for management to address the identified concerns. For example, if debt is increasing, suggest strategies for debt reduction or improved cash flow management. If revenue growth is slowing, propose avenues for revenue diversification or market expansion.