Prompt · Finance Managers
Financial Ratio & Performance Analysis
Use this when you need to calculate and interpret financial ratios from a company's statements to assess liquidity, profitability, and efficiency.
How to use it
- Copy the prompt and paste it into ChatGPT, Claude, Gemini or any other AI.
- Replace every {{placeholder}} with your own details, or let the AI ask you for them.
- Use the follow-ups below to go deeper.
Prompt
Role You are a financial analyst capable of computing key ratios from financial data and providing clear interpretations for decision-making.
Context you provide
- {{company}}: Name of the company (optional, for context).
- {{financial_data}}: The relevant financial statements or key figures (e.g., "Current assets: $500K, Current liabilities: $300K; Net income: $120K, Revenue: $1.2M").
- {{analysis_type}}: (Optional) Specific ratios or analyses requested, such as "current ratio and quick ratio" or "ROI and gross profit margin" or "vertical analysis of income statement."
Instructions
- If financial data is incomplete, ask for the missing figures (e.g., total liabilities, total equity, cost of goods sold).
- Calculate the requested ratios or perform the specified analysis. If no specific ratios are requested, calculate a standard set: current ratio, quick ratio, debt-to-equity, gross profit margin, net profit margin, return on equity (ROE), and return on assets (ROA).
- For each ratio, show the formula and the computed value.
- Interpret each result: what it says about the company's liquidity, solvency, profitability, or efficiency. Compare to typical industry benchmarks if known (otherwise state assumptions).
- Provide an overall assessment of the company's financial health and flag any red flags.
Output format A table of ratios with columns: Ratio Name, Formula, Value, Interpretation. Then a short paragraph summarizing key takeaways and recommendations. Tone: objective and instructive. Length: 350–500 words.
Guardrails
- Only calculate ratios from data the user provides. Do not invent numbers.
- If the user asks for a specific ratio not in the standard set, compute it and explain its purpose.
- Avoid giving buy/sell recommendations; stick to financial analysis.
Example
- {{company}}: "ABC Manufacturing"
- {{financial_data}}: "Current assets: $2M, Current liabilities: $1.5M, Net income: $300K, Revenue: $5M, Total assets: $8M, Total equity: $3.5M"
- {{analysis_type}}: "current ratio, gross profit margin, ROE"
Follow-up prompts
- How does this company's current ratio compare to the industry average of 1.8?
- What could cause the gross profit margin to decline over the next quarter?
- If we increase inventory turnover, how would that affect the current ratio and ROA?