name: financial-analysis description: Perform comprehensive financial analysis including DCF modeling, ratio analysis, and financial statement evaluation for companies and investment opportunities

Financial Analysis Skill

When performing financial analysis, follow these systematic steps to ensure thorough and accurate evaluation:

Core Methodology

1. Data Collection and Verification

Gather historical financial statements (income statement, balance sheet, cash flow)
Verify data sources for accuracy and completeness
Identify any anomalies or missing data points

2. Financial Ratio Analysis

Calculate and analyze key financial ratios:

Profitability: EBITDA margin, net profit margin, ROE, ROA
Liquidity: Current ratio, quick ratio, cash ratio
Leverage: Debt-to-equity, interest coverage ratio
Efficiency: Asset turnover, inventory turnover

3. Valuation Models

Build appropriate valuation models:

DCF Analysis: Project free cash flows, determine WACC, calculate terminal value
Comparable Company Analysis: Identify peers, analyze multiples (P/E, EV/EBITDA)
Precedent Transactions: Review similar deals for valuation benchmarks

4. Sensitivity Analysis

Perform scenario analysis (base case, bull case, bear case)
Test key assumptions (growth rates, discount rates, margins)
Identify critical value drivers

Guidelines

Always use conservative assumptions when uncertain
Cross-validate findings with multiple valuation methods
Clearly document all assumptions and their rationale
Present results with appropriate caveats and risk factors
Consider both quantitative metrics and qualitative factors

Key Outputs

Your analysis should produce:

Executive summary of findings
Detailed financial model with assumptions
Valuation range with sensitivity analysis
Investment recommendation with risk assessment
Supporting charts and visualizations

Example Use Cases

Public Company Valuation: "Analyze Tesla's financials and provide a DCF valuation"
Private Investment: "Evaluate this startup's unit economics and runway"
M&A Analysis: "Assess the financial implications of this acquisition"

Core Methodology

Gather historical financial statements (income statement, balance sheet, cash flow)

Verify data sources for accuracy and completeness

Identify any anomalies or missing data points

Calculate and analyze key financial ratios:

Profitability: EBITDA margin, net profit margin, ROE, ROA

Liquidity: Current ratio, quick ratio, cash ratio

Leverage: Debt-to-equity, interest coverage ratio

Efficiency: Asset turnover, inventory turnover

Build appropriate valuation models:

DCF Analysis: Project free cash flows, determine WACC, calculate terminal value

Comparable Company Analysis: Identify peers, analyze multiples (P/E, EV/EBITDA)

Precedent Transactions: Review similar deals for valuation benchmarks

Perform scenario analysis (base case, bull case, bear case)

Test key assumptions (growth rates, discount rates, margins)

Identify critical value drivers

financial-analysis

name: financial-analysis description: Perform comprehensive financial analysis including DCF modeling, ratio analysis, and financial statement evaluation for companies and investment opportunities

Financial Analysis Skill

Core Methodology

1. Data Collection and Verification

2. Financial Ratio Analysis

3. Valuation Models

4. Sensitivity Analysis

Guidelines

Key Outputs

Example Use Cases

Related Skills

Scientific Data Visualizer

Prompt Templates & Examples

Cyber Security Specialist

name: financial-analysis description: Perform comprehensive financial analysis including DCF modeling, ratio analysis, and financial statement evaluation for companies and investment opportunities

Financial Analysis Skill

Core Methodology

1. Data Collection and Verification

2. Financial Ratio Analysis

3. Valuation Models

4. Sensitivity Analysis

Guidelines

Key Outputs

Example Use Cases