Financial Statement Analysis
Interpretation of annual reports, balance sheets, and income statements to assess a company's financial health and performance.
Prompt template
Analyze the following financial statements / balance sheet for [COMPANY] for the period [FISCAL YEAR]. **Financial Data:** [INSERT BALANCE SHEET, INCOME STATEMENT OR KEY FIGURES HERE] **Please perform the following analyses:** **1. Liquidity Analysis** - Current ratio, quick ratio, cash ratio - Assessment of short-term solvency **2. Profitability Analysis** - Return on equity (ROE), return on assets (ROA), EBIT margin - Comparison with industry average [INDUSTRY] **3. Capital Structure & Leverage** - Equity ratio, debt-to-equity ratio - Interest coverage ratio **4. Efficiency Analysis** - Turnover ratios (receivables, inventory, payables) - Working capital management **5. Growth & Trend** - Revenue and earnings development over multiple years - Earnings quality (recurring vs. one-time) **6. Conclusion & Risk Assessment** - Financial strengths and weaknesses - Key risk factors - Overall rating (strong/stable/critical) Briefly explain all ratios in plain language.
Replace placeholders in [square brackets]: [COMPANY][FISCAL YEAR][INSERT BALANCE SHEET, INCOME STATEMENT OR KEY FIGURES HERE][INDUSTRY]
How to use this template
Copy the prompt, replace the placeholders in square brackets with your details and paste it into the AI assistant of your choice. The more precise your details, the better the result.
Tips for better results
- Include prior year figures for trend comparison
- Provide industry benchmark values for contextualization
- Ask for an Altman Z-Score calculation for insolvency risk
- Request a visualization of key metric trends
Suitable open models
The selection names current open models as a starting point for your own tests. It is not a measurement for this template.
Keywords: #finance #accounting #balance-sheet #kpi