Perform comprehensive financial analysis including DCF modeling, ratio analysis, and financial statement evaluation for companies and investment opportunities
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--- 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: 1. Executive summary of findings 2. Detailed financial model with assumptions 3. Valuation range with sensitivity analysis 4. Investment recommendation with risk assessment 5. 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"