| name | financial-analysis |
| description | Use when the user asks to "analyze financials", "revenue model", "unit economics", "pricing analysis", "cost structure", "profitability analysis", "financial projections", "business model economics", or needs financial-metric, revenue-analysis, or economic-viability guidance. |
| version | 0.4.2 |
Financial Analysis
Evaluate economic viability and business-model health through metrics, projections, and benchmarking.
Required Frameworks
| Framework | Output Section | Required |
|---|
| Unit Economics | Unit Economics | yes |
| Revenue Model Classification | Revenue Model | yes |
| Pricing Strategy | Pricing Analysis | yes |
| Cost Structure | Cost Structure | yes |
| Rule of 40 | Profitability Assessment | yes |
Unit Economics
- CAC — sales & marketing spend ÷ new customers (SaaS benchmark $50-$500+).
- LTV — ARPU ÷ churn × gross margin.
- LTV:CAC — target ≥3:1;
<1:1 unsustainable; >5:1 may be under-investing.
- Payback Period — CAC ÷ (ARPU × gross margin); target <12mo for SaaS.
Revenue Metrics
MRR (recurring revenue), ARR (MRR × 12), ARPU (revenue ÷ customers), NRR ((start MRR + expansion − contraction − churn) ÷ start MRR; target >100%). Growth: MoM, YoY, CAGR = ((End ÷ Start)^(1/years)) − 1.
Revenue Models
| Model | Key Metrics | Trend |
|---|
| Subscription (SaaS) | MRR, ARR, churn, NRR | INC |
| Usage-Based | usage growth, ARPU, expansion | INC |
| Transactional | volume, take rate, AOV | CONST |
| Marketplace | GMV, take rate, liquidity | CONST |
| Enterprise Licensing | deal size, renewal, services % | DEC |
Pricing Analysis
| Strategy | Description | Best For |
|---|
| Cost-plus | cost + margin | commodities |
| Value-based | % of customer value | differentiated products |
| Competitive | relative to alternatives | crowded markets |
| Penetration | low to gain share | new entrants |
| Premium | high for positioning | luxury/enterprise |
Pricing power: Strong (increases stick, low churn), Moderate (some sensitivity), Weak (commodity, price-driven).
Cost Structure
Fixed (rent, salaries, infra → operating leverage), variable (COGS, commissions, hosting → scales with revenue), semi-variable (support, marketing). Gross margin norms: SaaS 70-85%, services 30-50%, marketplace varies by take rate. High fixed + low variable = high operating leverage (good growing, risky declining).
Profitability
| Metric | Formula | Benchmark |
|---|
| Gross Margin | (Rev − COGS) / Rev | 70%+ SaaS |
| Operating Margin | Op. Income / Rev | 20%+ mature |
| Net Margin | Net Income / Rev | 10%+ profitable |
Rule of 40 (SaaS) — Growth % + Profit Margin % ≥ 40. Growing 50% allows −10% margin; growing 20% needs 20% margin; below 40 is an investor concern.
SaaS Benchmarks by Stage
| Metric | Early | Growth | Scale |
|---|
| Growth Rate | >100% | 50-100% | 20-50% |
| Gross Margin | 60%+ | 70%+ | 75%+ |
| NRR | >100% | >110% | >120% |
| LTV:CAC | >3:1 | >3:1 | >4:1 |
| Payback | <18mo | <12mo | <12mo |
Projections
- Revenue — customer growth × ARPU, with expansion/contraction and INC/DEC/CONST trends.
- Cost — fixed + (variable rate × revenue), step functions for scaling.
- Cash flow — operating generation, capital requirements, runway.
Scenario table (Bear < Base < Bull on growth, margin, cash position).
Render financial trend and projection charts (revenue, cost, cash flow over time) as a
Mermaid xychart-beta. Any figure, chart, or diagram is rendered as a fenced Mermaid
code block (a mermaid info-string fence), never ASCII art, an image link, or
Graphviz/DOT; a required figure is never silently omitted — if the data cannot support
it, say so in prose. Plain tabular matter stays a Markdown table.
Output Structure
## Financial Analysis Summary
### Business Model [type, revenue streams, pricing strategy]
### Key Metrics [table: value | benchmark | assessment]
### Unit Economics [CAC, LTV, payback, LTV:CAC]
### Trend Indicators [revenue / margin / unit-economics: INC/DEC/CONST]
### Financial Health Assessment
### Projections [3-year scenarios]
### Recommendations
Confidence Tiers
High = public financial data (filings, earnings) with 2+ quarters. Medium = credible analyst estimates or partial public data. Low = proxy-estimated or single data point. Cross-reference sizing (market size validates revenue potential) and competitive (competitor revenue/pricing). Alert on LTV:CAC < 1, revenue-model mismatch, or margin compression threatening viability. Distinguish reported vs. estimated figures and note data recency.
