Financial AnalystFinancial AnalysisBeginnerSingle prompt

Financial Ratio Analysis AI Prompt

Conduct a comprehensive financial ratio analysis for {{company}}. Financial statements: {{financial_statements}} Peer benchmarks: {{benchmarks}} Periods: {{periods}} 1. Profitab... Copy this prompt template, run it in your AI tool, and use related prompts to continue the workflow.

Prompt text
Conduct a comprehensive financial ratio analysis for {{company}}.

Financial statements: {{financial_statements}}
Peer benchmarks: {{benchmarks}}
Periods: {{periods}}

1. Profitability ratios:
   - Gross margin: Gross Profit / Revenue
   - EBITDA margin: EBITDA / Revenue
   - Operating margin: EBIT / Revenue
   - Net margin: Net Income / Revenue
   - Return on equity (ROE): Net Income / Average Equity
   - Return on assets (ROA): Net Income / Average Total Assets
   - Return on invested capital (ROIC): NOPAT / (Equity + Net Debt)

2. Liquidity ratios:
   - Current ratio: Current Assets / Current Liabilities (target > 1.5)
   - Quick ratio: (Cash + Receivables) / Current Liabilities (target > 1.0)
   - Cash ratio: Cash / Current Liabilities

3. Leverage ratios:
   - Net debt / EBITDA (target < 3x for investment grade)
   - Interest coverage: EBITDA / Interest Expense (target > 3x)
   - Debt / Equity ratio
   - Debt / Total Capital

4. Efficiency ratios:
   - Days Sales Outstanding (DSO): Receivables / (Revenue / 365)
   - Days Inventory Outstanding (DIO): Inventory / (COGS / 365)
   - Days Payable Outstanding (DPO): Payables / (COGS / 365)
   - Cash Conversion Cycle: DSO + DIO - DPO

5. Per ratio: provide:
   - Value for each historical period
   - Trend: improving or deteriorating?
   - Peer median comparison: above or below benchmark?
   - Commentary: what is driving the trend?

6. DuPont decomposition of ROE:
   ROE = Net Margin x Asset Turnover x Financial Leverage
   Which component is driving ROE? Is the source of returns healthy (operating efficiency) or concerning (excessive leverage)?

Return: ratio table across periods, peer benchmark comparison, trend assessment, DuPont decomposition, and key findings.

When to use this prompt

Use case 01

Use it when you want to begin financial analysis work without writing the first draft from scratch.

Use case 02

Use it when you want a more consistent structure for AI output across projects or datasets.

Use case 03

Use it when you want prompt-driven work to turn into a reusable notebook or repeatable workflow later.

Use case 04

Use it when you want a clear next step into adjacent prompts in Financial Analysis or the wider Financial Analyst library.

What the AI should return

The AI should return a structured result that covers the main requested outputs, such as Profitability ratios:, Gross margin: Gross Profit / Revenue, EBITDA margin: EBITDA / Revenue. The final answer should stay clear, actionable, and easy to review inside a financial analysis workflow for financial analyst work.

How to use this prompt

1

Open your data context

Load your dataset, notebook, or working environment so the AI can operate on the actual project context.

2

Copy the prompt text

Use the copy button above and paste the prompt into the AI assistant or prompt input area.

3

Review the output critically

Check whether the result matches your data, assumptions, and desired format before moving on.

4

Chain into the next prompt

Once you have the first result, continue deeper with related prompts in Financial Analysis.

Frequently asked questions

What does the Financial Ratio Analysis prompt do?+

It gives you a structured financial analysis starting point for financial analyst work and helps you move faster without starting from a blank page.

Who is this prompt for?+

It is designed for financial analyst workflows and marked as beginner, so it works well as a guided starting point for that level of experience.

What type of prompt is this?+

Financial Ratio Analysis is a single prompt. You can copy it as-is, adapt it, or use it as one step inside a larger workflow.

Can I use this outside MLJAR Studio?+

Yes. The prompt text works in other AI tools too, but MLJAR Studio is the best fit when you want local execution, visible Python code, and reusable notebooks.

What should I open next?+

Natural next steps from here are Cash Flow Analysis, Unit Economics Analysis, Working Capital Analysis.