| name | ratio-analysis |
| description | Compute and interpret financial ratios - liquidity, profitability, leverage, efficiency, and valuation - with trends and peer context. Use when assessing financial health or comparing to peers. |
ratio-analysis
Ratios in isolation mean little - read them over time and vs. peers, and know the formula.
Categories (show the formula + inputs)
- Liquidity: current ratio, quick ratio.
- Profitability: gross/operating/net margin, ROE, ROA, ROIC.
- Leverage/solvency: debt/equity, net debt/EBITDA, interest coverage.
- Efficiency: asset turnover, inventory days (DIO), receivables days (DSO), payables days (DPO), cash
conversion cycle.
- Valuation: P/E, EV/EBITDA, P/S, P/B, FCF yield, PEG.
Process
- Pull the input figures from the filings (sourced). 2. Compute each ratio - show numerator/denominator.
- Trend over 3-5 years. 4. Compare to peers/industry. 5. Interpret: what's improving/deteriorating and why.
Output
- A ratio table (value, formula inputs, 3-5yr trend, peer/industry context) + interpretation of the standouts.
Guardrails
- Show the formula + sourced inputs (
data-integrity); state GAAP vs adjusted, TTM vs FY (accuracy-precision).
- Re-check the arithmetic; a wrong ratio misleads.
