Analyze [FINANCIAL STATEMENTS] for [COMPANY AND PERIOD] using the context in [BUSINESS CONTEXT] and comparison data in [PRIOR PERIOD OR PEERS]. This is an analytical briefing, not investment, lending, tax, audit, or accounting advice. Do not fill in missing line items, footnotes, segment data, or market facts. First, state the reporting basis, units, periods covered, source limitations, and any comparability issues such as acquisitions, discontinued operations, restatements, changed accounting policies, or fiscal-year differences. Then produce: 1. An executive summary of 5-7 bullets distinguishing reported facts from interpretation. 2. A table of revenue, gross profit, operating income, net income, operating cash flow, capital expenditures, free cash flow definition used, cash, debt, and working capital. Show the formula and source figures for each calculated value. 3. Trend analysis for growth, margins, liquidity, leverage, working-capital movement, cash conversion, and debt maturity or interest coverage only if inputs are supplied. 4. A "Questions raised" section covering concentration, one-time items, non-cash adjustments, related-party items, contingencies, covenant risk, and footnote items that need review. 5. A concise list of missing information that would change the conclusion. Use percentages and ratios with denominators named. Reconcile net income to operating cash flow when the cash-flow statement permits it. Never label a company healthy, distressed, cheap, or investable without defining the evidence and limits. Before answering, recalculate every ratio from displayed source figures and flag any number that cannot be reconciled or compared reliably. Ask up to 3 clarifying questions only if the statements, period, currency, or units are missing.
Fill in
| Placeholder | What to enter | Example |
|---|---|---|
| [FINANCIAL STATEMENTS] | Paste or upload the income statement, balance sheet, cash-flow statement, and relevant notes if available. | FY2025 income statement: revenue $48.2m, gross profit $19.8m, operating income $3.1m, net income $1.7m; operating cash flow $4.4m; capex $1.2m; cash $5.6m; debt $14.0m. |
| [COMPANY AND PERIOD] | State the company name, fiscal period, currency, and whether figures are annual, quarterly, or trailing twelve months. | North Harbor Tools, year ended December 31, 2025, USD, annual unaudited statements. |
| [BUSINESS CONTEXT] | Describe the company’s business model, industry, and the decision or question the analysis should inform. | Distributor of industrial hand tools; assessing operating performance before renewing a supplier agreement. |
| [PRIOR PERIOD OR PEERS] | Provide prior-period figures or named peer data if you want comparisons. | FY2024 revenue $43.0m, gross profit $18.5m, operating cash flow $3.0m; no peer data. |
How to use
- Paste the statements with headings, units, and dates intact; include footnotes when possible.
- Specify whether you want a credit, operating, acquisition, or investor-oriented lens.
- Trace two or three calculations in the output back to the source figures.
- Follow up with: "Build a downside scenario using only these stated assumptions and show each formula."
Variations
Credit review
Use before a lending or supplier-credit decision.
Assess [BORROWER] using [STATEMENTS], [DEBT TERMS], and [BUSINESS CONTEXT]. Produce a credit-focused memo covering revenue and EBITDA trend, cash flow, leverage, interest coverage, liquidity, covenant headroom only where calculable, and debt maturities. Display all formulas and source values. Separate reported figures from assumptions, identify missing footnotes, and list diligence questions. This is not lending advice. Ask up to 3 questions only if key inputs are absent.
Earnings quality
Use to examine whether profit converts to cash.
Analyze earnings quality for [COMPANY] using [INCOME STATEMENT], [CASH FLOW STATEMENT], and [NOTES]. Reconcile net income to operating cash flow, identify material non-cash items and working-capital changes, compare recurring versus disclosed unusual items, and show calculations. Do not infer manipulation or fraud from ratios alone. Flag missing disclosures and state what additional records would be needed. Ask up to 3 clarifying questions only for required missing inputs.
Monthly review
Use for internal management reporting.
Review [MONTHLY FINANCIALS] against [BUDGET AND PRIOR YEAR] for [BUSINESS]. Produce a management variance report: revenue, gross margin, operating expenses, cash, receivables, payables, and forecast risks. For each material variance, state the amount, percentage, likely driver only if documented, owner question, and next action. Do not invent explanations. Verify all percentage calculations and flag data-quality issues before answering.
Tips
- Keep reported GAAP or IFRS figures separate from adjusted measures; an adjustment needs a stated definition and source.
- A profit increase can coexist with weaker cash generation, so inspect receivables, inventory, payables, and non-cash items together.
- Quarterly comparisons can mislead seasonal businesses; compare the same fiscal quarter where possible.
- Read debt, leases, stock compensation, revenue recognition, and contingencies notes before reaching a conclusion about risk.
FAQ
Can AI calculate financial ratios accurately?
It can calculate them, but you should verify formulas, units, and period alignment. A correct division can still be a misleading comparison.
What statements should I provide?
Provide the income statement, balance sheet, cash-flow statement, and notes. Notes often explain the items that determine whether a trend is meaningful.
Can this replace an accountant or analyst?
No. Use it to organize questions and preliminary analysis, then involve a qualified professional for audits, filings, tax, credit, or investment decisions.