About Prompt
- Prompt Type – Dynamic
- Prompt Platform – ChatGPT, Grok, Deepseek, Gemini, Copilot, Midjourney, Meta AI and more
- Niche – Business Health Monitoring
- Language – English
- Category – Financial Analysis
- Prompt Title – AI Prompt for Automating Financial Statement Analysis for Businesses
Prompt Details
This prompt is designed for dynamic financial statement analysis across various AI platforms, catering to the business health monitoring niche. It allows for customizable inputs, focusing on specific aspects of analysis, and adapts to different financial reporting standards (e.g., US GAAP, IFRS).
**Prompt Structure:**
“`
Analyze the financial health of [Company Name] using the provided financial statements ([Statement Type 1], [Statement Type 2], …).
**Company Information:**
* Company Name: [Company Name]
* Industry: [Industry Sector]
* Operating Geography: [Geographical Area of Operation]
* Reporting Period: [Start Date] – [End Date]
* Reporting Standard: [e.g., US GAAP, IFRS]
**Financial Statements:**
* [Statement Type 1]: [Provide data in a structured format, e.g., CSV, JSON, or directly paste data as a table]
* [Statement Type 2]: [Provide data in a structured format]
* …
**Analysis Focus:**
* **Overall Financial Health:** Assess the overall financial health of the company. Consider key performance indicators (KPIs) such as profitability, liquidity, solvency, and efficiency. Provide a concise summary of the company’s financial position.
* **[Specific Area 1]:** [Detailed instructions on a specific area to analyze. Examples include:]
* **Profitability Analysis:** Analyze the company’s profitability. Calculate and interpret key profitability ratios like gross profit margin, operating profit margin, net profit margin, and return on equity (ROE). Identify trends and potential drivers of changes in profitability.
* **Liquidity Analysis:** Evaluate the company’s short-term liquidity. Calculate and interpret ratios such as the current ratio, quick ratio, and cash ratio. Assess the company’s ability to meet its short-term obligations.
* **Solvency Analysis:** Assess the company’s long-term solvency. Calculate and interpret ratios such as the debt-to-equity ratio, debt-to-asset ratio, and interest coverage ratio. Evaluate the company’s ability to meet its long-term obligations.
* **Efficiency Analysis:** Analyze the company’s efficiency in utilizing its assets and managing its working capital. Calculate and interpret ratios such as inventory turnover, days sales outstanding, and asset turnover.
* **Cash Flow Analysis:** Analyze the company’s cash flow from operating, investing, and financing activities. Identify trends and insights into the company’s cash generation and usage.
* **Comparison Analysis:** Compare the company’s financial performance to industry benchmarks or competitors. Provide data on the benchmark or competitor, including their industry, size, and reporting period.
* **Risk Assessment:** Identify potential financial risks facing the company, based on the financial statement analysis. These could include liquidity risk, credit risk, or operational risk.
* **[Specific Area 2]:** [Detailed instructions on another specific area to analyze.]
* …
**Output Format:**
* Provide the analysis in a clear and concise format.
* Use tables and charts to visualize key findings.
* Explain any significant trends or anomalies observed in the data.
* Include specific recommendations based on your analysis. These recommendations can be related to improving profitability, liquidity, solvency, efficiency, or managing risk.
* Quantify the impact of the recommendations whenever possible.
**Example Usage:**
Analyze the financial health of “Acme Corporation” using the provided Income Statement and Balance Sheet.
**Company Information:**
* Company Name: Acme Corporation
* Industry: Manufacturing
* Operating Geography: United States
* Reporting Period: 2022-01-01 to 2022-12-31
* Reporting Standard: US GAAP
**Financial Statements:**
* Income Statement: [Provide CSV data of Acme Corporation’s Income Statement]
* Balance Sheet: [Provide JSON data of Acme Corporation’s Balance Sheet]
**Analysis Focus:**
* Overall Financial Health: Assess the overall financial health…
* Profitability Analysis: Analyze the company’s profitability…
* Liquidity Analysis: Evaluate the company’s short-term liquidity…
**Output Format:**
* Provide the analysis…
“`
**Key Advantages of this Prompt:**
* **Dynamic and Adaptable:** Easily customize the company information, financial statements, and analysis focus.
* **Structured Input:** Facilitates seamless data integration from various sources.
* **Specific Instructions:** Guides the AI to provide targeted and relevant analysis.
* **Comprehensive Output:** Ensures the analysis covers key aspects of financial health and provides actionable insights.
* **Platform Agnostic:** Designed to work across various AI platforms with minimal modifications.
This prompt empowers users to perform in-depth financial statement analysis efficiently and effectively, enabling data-driven decisions for business health monitoring. It encourages the AI to provide actionable recommendations based on its findings, driving value for businesses.