financial-analysis

name	financial-analysis
description	Extract and analyse financial statements (annual reports, balance sheets, P&L, cash flow) to calculate 30+ financial ratios, perform trend analysis, detect anomalies, and produce analyst-grade financial health reports. Use when asked to "analyse financial statements", "calculate financial ratios", "review annual report", "financial health check", "balance sheet analysis", "P&L analysis", "cash flow analysis", or any financial document analysis task.
license	MIT
metadata	{"version":"1.0.0","tags":["finance"]}

Financial Statement Analyzer

When to Use This Skill

Use this Skill when the user asks to:

• Analyse financial statements or annual reports
• Calculate financial ratios
• Assess company financial health
• Perform horizontal or vertical analysis
• Detect financial anomalies or red flags
• Compare financial performance across periods or peers
• Produce financial health reports

Workflow

Financial Analysis Progress:

• Step 1: Extract financial data
• Step 2: Structure into standard format
• Step 3: Calculate financial ratios
• Step 4: Perform trend analysis
• Step 5: Detect anomalies
• Step 6: Produce report
• Step 7: Persist output

Step 1: Extract financial data

Route documents to appropriate extraction:

• PDF annual reports → Tool: call_doc_intelligence({ source, model: "prebuilt-layout" })
• XLSX spreadsheets → Tool: extract_xlsx({ source })
• PDF (text-based) → Tool: extract_pdf({ source })

Use Doc Intelligence for complex table extraction from annual reports — tables with merged cells, multi-level headers, and footnotes.

Step 2: Structure into standard format

Map extracted data into three standard statements:

Balance Sheet (point-in-time):

• Current Assets: Cash, Receivables, Inventory, Other
• Non-Current Assets: PP&E, Intangibles, Investments, Other
• Current Liabilities: Payables, Short-term Debt, Accruals, Other
• Non-Current Liabilities: Long-term Debt, Deferred Tax, Other
• Equity: Share Capital, Retained Earnings, Other

Income Statement (period):

• Revenue, COGS, Gross Profit
• Operating Expenses (SGA, R&D, D&A, Other)
• Operating Income (EBIT)
• Interest, Tax, Net Income

Cash Flow Statement (period):

• Operating Cash Flow
• Investing Cash Flow
• Financing Cash Flow
• Net Cash Change

Step 3: Calculate financial ratios

Liquidity Ratios

Ratio	Formula	Healthy Range
Current Ratio	Current Assets / Current Liabilities	1.5 – 3.0
Quick Ratio	(Current Assets − Inventory) / Current Liabilities	1.0 – 2.0
Cash Ratio	Cash / Current Liabilities	0.5 – 1.0
Working Capital	Current Assets − Current Liabilities	Positive

Profitability Ratios

Ratio	Formula	Notes
Gross Margin	Gross Profit / Revenue × 100%	Industry-dependent
Operating Margin	EBIT / Revenue × 100%
Net Margin	Net Income / Revenue × 100%
ROA	Net Income / Total Assets × 100%
ROE	Net Income / Shareholders' Equity × 100%
ROIC	NOPAT / Invested Capital × 100%

Leverage Ratios

Ratio	Formula	Healthy Range
Debt-to-Equity	Total Debt / Total Equity	< 2.0 (industry-dependent)
Debt-to-Assets	Total Debt / Total Assets	< 0.6
Interest Coverage	EBIT / Interest Expense	> 3.0
Equity Multiplier	Total Assets / Total Equity

Efficiency Ratios

Ratio	Formula	Notes
Asset Turnover	Revenue / Total Assets
Inventory Turnover	COGS / Average Inventory
Receivables Turnover	Revenue / Average Receivables
Days Sales Outstanding	365 / Receivables Turnover
Days Inventory Outstanding	365 / Inventory Turnover
Days Payable Outstanding	365 / (COGS / Average Payables)
Cash Conversion Cycle	DSO + DIO − DPO

Valuation Indicators (if market data available)

Ratio	Formula
EV/EBITDA	Enterprise Value / EBITDA
P/E	Price / Earnings per Share
P/B	Price / Book Value per Share

Step 4: Perform trend analysis

Horizontal analysis — Compare each line item across periods:

• YoY growth rate for each line item
• CAGR over the full period
• Flag items growing significantly faster or slower than revenue

Vertical analysis — Express each line item as % of revenue (income) or total assets (balance sheet):

• Compare composition across periods
• Flag structural shifts (e.g., COGS as % of revenue increasing)

Step 5: Detect anomalies

Flag items matching these red flag patterns:

Red Flag	Detection Rule
Revenue/receivables divergence	Revenue growing but receivables growing faster (>1.5× rate)
Cash flow/income divergence	Net income positive but operating cash flow negative
Inventory build-up	Inventory growing faster than COGS
Debt spike	Debt-to-equity increased >50% YoY
Margin compression	Gross or operating margin declining >300bps YoY
Working capital deterioration	Cash conversion cycle increasing >20%
Goodwill impairment risk	Goodwill > 50% of total assets
Going concern indicators	Current ratio <1.0 AND negative operating cash flow

Step 6: Produce report

Financial Health Summary

Metric	Value	Assessment
Overall health rating		Strong / Adequate / Concerning / Critical
Liquidity
Profitability
Leverage
Efficiency

Key Financial Ratios

[Tables from Step 3 with calculated values]

Trend Analysis

Line Item	Period 1	Period 2	Period 3	YoY Change	Trend

Anomalies & Red Flags

Flag	Metric	Value	Threshold	Severity	Explanation

Peer Comparison (if multiple companies provided)

Ratio	Company A	Company B	Industry Avg

Narrative Assessment

3-5 paragraph analysis covering financial health, key trends, risks, and outlook.

Step 7: Persist output

Tool: local_files({ path: "~/contelligence-output/financial//.md", content: })

Constraints

• This is financial analysis, not investment advice. Include disclaimer.
• Only calculate ratios from data present in the documents — never fabricate line items.
• When data is missing or unclear, note "not available" rather than estimating.
• Industry-dependent ratios should note the industry context for proper interpretation.