Financial Statement Analyzer

Analyzes income statements, balance sheets, and cash flow statements to extract business insights. Covers trend analysis, common-size comparisons, and red flag identification.

Usage

Provide the financial statements or key figures you want analyzed. Specify whether this is for investment analysis, business management, or competitive comparison. Include multiple periods for trend analysis.

Examples

• "Analyze these income statements from the past 3 years and identify revenue, margin, and expense trends"
• "Review this balance sheet and flag any concerning changes in debt levels or working capital"
• "Compare the cash flow statements of two competing companies to assess which generates better free cash flow"

Guidelines

• Start with the cash flow statement; it is the hardest to manipulate and reveals the true financial picture
• Use common-size analysis (every line as a percentage of revenue) to compare companies of different sizes
• Look for divergence between net income and operating cash flow; persistent gaps may indicate earnings manipulation
• Check revenue quality: is growth coming from new customers, price increases, or one-time items
• Track working capital trends; rapidly growing receivables without proportional revenue growth is a warning sign