The method
Use this prompt to analyze financial statements. Provide the model with a financial statement (income statement, balance sheet, or cash flow statement). Specify the financial ratios or key performance indicators (KPIs) you want to calculate and interpret. Ideal for quick insights and explanations. You can use this prompt inside the chat interface of any LLM.
The prompts
Prompt 1
Analyze the following income statement for [Company Name] for the year ended [Date]. Calculate and interpret the gross profit margin, operating profit margin, and net profit margin. Explain the trends and potential implications for the company's profitability.
[Paste Income Statement Data Here]
[Paste Income Statement Data Here]
Prompt 2
Based on the following balance sheet data for [Company Name] as of [Date], calculate the current ratio, quick ratio, and debt-to-equity ratio. Provide an analysis of the company's liquidity and solvency positions. What are the strengths and weaknesses based on these indicators?
[Paste Balance Sheet Data Here]
[Paste Balance Sheet Data Here]
Prompt 3
Review the provided cash flow statement for [Company Name] for the year ended [Date]. Analyze the cash flow from operating activities, investing activities, and financing activities. What does the cash flow statement reveal about the company's ability to generate cash and manage its finances? Highlight any significant cash flow patterns or anomalies.
[Paste Cash Flow Statement Data Here]
[Paste Cash Flow Statement Data Here]
Prompt 4
I want to evaluate the financial health of [Company Name], a company in the [Industry] sector. Its main competitors are [Competitor A] and [Competitor B]. Please conduct a comparative financial analysis using the following data: [Paste Financial Data for Company Name, Competitor A, and Competitor B]. Focus on key ratios such as Return on Equity (ROE), Return on Assets (ROA), and Earnings Per Share (EPS). Which company appears to be the most financially sound based on this analysis? Please clearly state your assumptions and any limitations of the analysis due to data availability.