ChatGPT Prompts for Financial Analysts

<context> You are a financial analyst reviewing [COMPANY]. I will provide income statement, balance sheet, and cash flow figures: [FIGURES]. I want a complete ratio analysis grouped by category. </context> <task> 1. Calculate liquidity ratios (current, quick, cash) and explain what each says for this business. 2. Calculate leverage ratios (debt/equity, debt/EBITDA, interest coverage). 3. Calculate profitability ratios (gross, operating, net margin, ROE, ROA, ROIC). 4. Calculate efficiency ratios (asset turnover, inventory turnover, receivables turnover). 5. Present results in a table with the formula, the value, and a one-line interpretation per ratio. Show your arithmetic for each ratio so I can verify it, and note that I must confirm all input figures against audited statements. </task>

<context> You are analyzing [COMPANY] using common-size statements. Multi-year figures: [FIGURES]. I want both vertical and horizontal common-size views with commentary. </context> <task> 1. Convert the income statement to vertical common-size (each line as a percent of revenue). 2. Convert the balance sheet to vertical common-size (as a percent of total assets). 3. Produce a horizontal year-over-year percent-change view. 4. Highlight the three line items with the largest shifts and propose hypotheses for each. 5. List the follow-up data I would need to confirm or reject each hypothesis. Frame all hypotheses as questions to investigate, and flag that percentages depend on figures I must verify. </task>

<context> You are assessing earnings quality for [COMPANY] by comparing reported profit to cash generation. Figures: [FIGURES] (net income, operating cash flow, capex, working capital changes, non-cash items). </context> <task> 1. Calculate the cash conversion ratio (operating cash flow / net income) and interpret it. 2. Reconcile net income to operating cash flow and identify the largest reconciling items. 3. Flag any signs of low earnings quality (rising receivables outpacing revenue, capitalized costs, one-time gains). 4. Calculate free cash flow and free cash flow conversion. 5. Summarize whether reported profitability appears backed by real cash, with caveats. </task>

<context> You are benchmarking [COMPANY] against peers. I will supply the metrics for [COMPANY] and each peer: [FIGURES] (margins, growth, leverage, returns). I want a comparison that surfaces relative strengths and weaknesses. </context> <task> 1. Build a side-by-side table of the supplied metrics for the company and peers. 2. Add a column showing the peer median or mean for each metric. 3. Mark where the company is above, in line with, or below the peer set. 4. Summarize the company's relative positioning in 3 bullet points. 5. Note which metric differences most warrant a deeper look. Do not invent peer figures — use only the values I provide, and remind me to verify them. </task>

<context> You are reviewing several years of financials for [COMPANY] to spot trends and anomalies before an earnings discussion. Figures: [FIGURES] (multi-period line items). </context> <task> 1. Calculate the compound annual growth rate for revenue, gross profit, and operating income. 2. Identify line items whose trend direction or rate of change shifts noticeably between periods. 3. Flag any item that moves inconsistently with related items (e.g., revenue up but margin collapsing). 4. Propose a likely operational or accounting explanation for each anomaly as a hypothesis. 5. List the questions to raise with management or in the 10-K notes. Present explanations as hypotheses to test, not conclusions, and flag that all figures need verification. </task>

<context> You are an FP&A analyst building next year's operating budget for [COMPANY], a [INDUSTRY] business. Prior-year actuals and known plans: [FIGURES]. I need a structured budget framework. </context> <task> 1. Outline the budget build order (revenue, COGS, opex by function, capex, headcount). 2. For each major cost category, recommend whether to budget as a percent of revenue, a fixed amount, or a per-headcount figure. 3. List the cross-functional inputs I should collect from each department. 4. Suggest a small set of guardrail metrics to keep the budget realistic (margin, opex growth vs. revenue growth). 5. Recommend a monthly phasing approach for seasonality. Mark every prior-year figure and assumption as requiring my verification. </task>

<context> You are forecasting revenue for [COMPANY] for the next [PERIOD]. Historical revenue and drivers: [FIGURES]. I want multiple forecasting approaches compared, not a single guess. </context> <task> 1. Describe at least three forecasting methods relevant here (trend extrapolation, driver-based, run-rate annualization). 2. For each method, show the calculation logic using my figures as placeholders. 3. Compare the methods on accuracy assumptions and data requirements. 4. Recommend which method fits this business and stage, with reasoning. 5. Suggest how to triangulate a final number from the methods. Remind me the outputs are projections dependent on my inputs and must be sanity-checked against bookings and pipeline data. </task>

<context> You are forecasting operating expenses for [COMPANY]. Historical opex detail: [FIGURES] (by category and as a percent of revenue). I want a disciplined expense forecast. </context> <task> 1. Classify each cost category as fixed, variable, or semi-variable. 2. Recommend the right driver for each (revenue, headcount, units, fixed escalation). 3. Build the forecast logic per category as written formulas. 4. Flag categories where scaling assumptions are riskiest. 5. Show how total opex and operating margin evolve under the build. Flag all historical percentages as inputs I must confirm before relying on the forecast. </task>

<context> You are preparing a budget-vs-actual variance report for [COMPANY] for [PERIOD]. Budget and actual figures by line: [FIGURES]. I need a clean variance analysis with commentary. </context> <task> 1. Calculate the dollar and percent variance for each line item. 2. Classify each variance as favorable or unfavorable from a profit standpoint. 3. Decompose key variances into volume vs. rate/price components where applicable. 4. Highlight the three variances most material to the period result. 5. Draft neutral, factual commentary for each material variance for management review. Show the variance arithmetic and remind me to confirm both budget and actual figures. </task>

<context> You are maintaining a rolling forecast for [COMPANY]. Current forecast, latest actuals, and new information: [FIGURES]. I want to reforecast the remaining periods systematically. </context> <task> 1. Outline a process to roll actuals into the forecast and extend the horizon by one period. 2. Identify which forward assumptions should change given the latest actuals and new information. 3. Quantify the impact of each adjustment on full-year revenue and operating income. 4. Flag assumptions that should stay fixed to avoid over-fitting to one period. 5. Summarize the reforecast story in three bullets for leadership. Label all impact estimates as dependent on figures I must verify. </task>

<context> You are building a discounted cash flow valuation for [COMPANY]. Inputs available: [FIGURES] (projected free cash flows, growth, margins, tax rate, capital structure). I want the full DCF framework and logic. </context> <task> 1. Lay out the DCF steps: project unlevered free cash flow, choose discount rate, discount flows, add terminal value, bridge to equity value. 2. Show the unlevered FCF formula and the discounting formula explicitly. 3. Explain both terminal value methods (Gordon growth and exit multiple) and when each fits. 4. Detail the enterprise-to-equity bridge (net debt, minority interest, etc.). 5. List the 6 assumptions that drive the output most. Show all formulas and remind me the result is a model output requiring verification, not financial advice or a price target. </task>

<context> You are calculating the weighted average cost of capital for [COMPANY]. Inputs: [FIGURES] (risk-free rate, beta, equity risk premium, cost of debt, tax rate, capital weights). </context> <task> 1. Show the cost of equity calculation via CAPM with my inputs as placeholders. 2. Show the after-tax cost of debt calculation. 3. Show the WACC weighting formula and combine the components. 4. Explain how to choose market-value vs. book-value weights and which is correct. 5. Note the sensitivity of WACC to beta and the equity risk premium. Show each step of arithmetic and flag every input as requiring my own sourcing and verification. </task>

<context> You are running a comparable company (trading multiples) analysis for [COMPANY]. Company and peer data: [FIGURES] (EV, equity value, revenue, EBITDA, earnings for each). I want a clean comps framework. </context> <task> 1. Calculate the relevant multiples for each peer (EV/Revenue, EV/EBITDA, P/E). 2. Compute the peer set median and mean for each multiple. 3. Apply the peer multiples to the company's metrics to derive an implied valuation range. 4. Discuss which multiple is most appropriate for this industry and why. 5. Note adjustments needed for comparability (growth, margin, size differences). Use only the figures I provide, show the math, and label the implied range as indicative, not advice. </task>

<context> You are analyzing precedent M&A transactions to value [COMPANY]. Deal data I will supply: [FIGURES] (target metrics and deal values for each transaction). I want a transaction-multiples framework. </context> <task> 1. Calculate transaction multiples for each deal (EV/Revenue, EV/EBITDA) from my data. 2. Note the control premium embedded in transaction multiples vs. trading comps. 3. Compute the median/mean transaction multiple and apply to the company. 4. Discuss how deal vintage and market conditions affect comparability. 5. Derive an implied valuation range and list its key caveats. Use only the deal figures I provide and frame the range as indicative analysis, not a recommendation. </task>

<context> You are summarizing multiple valuation methods for [COMPANY] into one view. Outputs from each method: [FIGURES] (DCF range, comps range, precedents range, 52-week range). I want a football-field synthesis. </context> <task> 1. Present each method's valuation range in a structured list (low, midpoint, high). 2. Explain why the ranges differ and what each method emphasizes. 3. Identify where the ranges overlap to suggest a defensible central value. 4. Note which method deserves the most weight for this company and why. 5. List the biggest risks that could move the overall valuation. Label the synthesis as analysis support requiring verification, explicitly not a price target or investment advice. </task>

<context> You are writing the narrative for [COMPANY]'s monthly financial report to leadership. Period results: [FIGURES] (revenue, margin, opex, cash, vs. budget and prior period). Tone: concise, factual, executive. </context> <task> 1. Draft a 3-sentence executive summary of the period. 2. Write a revenue paragraph covering the result, the driver, and the variance to budget. 3. Write a profitability and cost paragraph with the key movements. 4. Write a cash and liquidity paragraph. 5. Close with a forward-looking watch-items section. Keep it factual and neutral, attribute drivers only as supported by the figures, and flag that I must verify all numbers before distribution. </task>

<context> You are preparing the financial section of a board deck for [COMPANY]. Quarter results and full-year context: [FIGURES]. I want slide-by-slide content, not design. </context> <task> 1. Propose the slide sequence for the financial section (KPI summary, P&L, cash/runway, forecast, asks). 2. For each slide, list the 3-5 data points to show and the one headline takeaway. 3. Write speaker-note talking points for the two most important slides. 4. Anticipate three tough board questions and draft factual answers. 5. Flag any data point that, if weak, the board will probe hardest. Keep all content tied to my figures and remind me to verify every number before the meeting. </task>

<context> You are defining the financial KPI dashboard for [COMPANY], a [INDUSTRY] business. Available data: [FIGURES]. I want a focused set of metrics with clear definitions. </context> <task> 1. Recommend 8-10 financial KPIs that matter most for this business model. 2. For each KPI, give a precise definition and the exact formula. 3. Note the cadence (daily, monthly, quarterly) and the owner for each. 4. Suggest a sensible target or benchmark range to compare against, flagged as a starting point. 5. Identify the two or three KPIs that should sit at the top as headline metrics. Flag all benchmark ranges as illustrative and dependent on figures I must verify. </task>

<context> You are preparing finance talking points for [COMPANY]'s results review. Period figures and key changes: [FIGURES]. I want clear, factual messaging for an internal or investor audience. </context> <task> 1. Draft a headline result statement covering revenue, margin, and cash. 2. Provide three supporting talking points that explain the drivers. 3. Prepare neutral framing for any negative or below-plan items. 4. Draft answers to the three most likely questions about the results. 5. List metrics or claims I should double-check before saying them aloud. Keep all claims tied strictly to my figures and remind me to verify them; this is messaging support, not guidance. </task>

<context> You are writing variance commentary for [COMPANY]'s management report. Line-level variances: [FIGURES] (line, budget, actual, variance, and the cause where I know it). I want concise, consistent commentary. </context> <task> 1. For each material variance, write a one-to-two sentence explanation in a consistent format. 2. Lead each with whether it is favorable or unfavorable and the dollar size. 3. Separate volume-driven from rate/price-driven causes where I supply them. 4. Keep tone neutral and avoid speculation beyond the causes I provide. 5. Group the commentary by statement section for easy reading. Do not invent causes I have not supplied, and flag that all figures need my verification. </task>

<context> You are building three scenarios for [COMPANY]'s plan. Base-case assumptions: [FIGURES]. I want disciplined bull and bear cases derived from the base, not random numbers. </context> <task> 1. List the key assumptions that should differ across scenarios (growth, margin, churn, pricing). 2. For each, propose a directional and magnitude change for bull and bear, with reasoning. 3. Describe the resulting impact on revenue, operating income, and cash for each scenario. 4. Define the trigger events that would push reality toward bull or bear. 5. Recommend which scenario to use for planning vs. stress purposes. Frame all magnitudes as illustrative and dependent on base figures I must verify. </task>

<context> You are designing a sensitivity analysis for [COMPANY]'s valuation or plan. Output metric and key variables: [FIGURES] (e.g., output = equity value; variables = WACC and terminal growth). </context> <task> 1. Recommend the two variables most worth sensitizing for this output and why. 2. Propose a sensible range and step size for each variable. 3. Describe how to structure the two-variable data table (rows, columns, output cell). 4. Explain how to read the table and which cells represent the key cases. 5. Suggest a second one-variable sensitivity for a third important driver. Note that the table structure is the deliverable and all output values depend on figures I must verify. </task>

<context> You are running a breakeven analysis for [COMPANY] or a specific decision. Cost and revenue structure: [FIGURES] (fixed costs, variable cost per unit, price, current volume). </context> <task> 1. Calculate the contribution margin per unit and the contribution margin ratio. 2. Calculate the breakeven volume and breakeven revenue, showing the formulas. 3. Determine the margin of safety at the current volume. 4. Show how breakeven shifts if price or variable cost changes by a given percent. 5. Identify the single lever that most improves breakeven for this structure. Show all arithmetic and flag every cost and price input as requiring my verification. </task>

<context> You are stress-testing [COMPANY] for a downside scenario for liquidity planning. Base figures: [FIGURES] (revenue, cost structure, cash, debt, covenants). I want a severe but plausible stress. </context> <task> 1. Define a severe downside shock (revenue decline, margin compression) and justify the magnitude. 2. Walk through the impact on operating cash flow and ending cash by period. 3. Identify the period, if any, where cash or a covenant comes under pressure. 4. List the mitigating levers available (cost cuts, capex deferral, financing) and their rough timing. 5. State the single metric to monitor most closely in this scenario. Label the shock magnitudes as illustrative and all outputs as dependent on figures I must verify. </task>

<context> You are setting up a Monte Carlo simulation to understand the distribution of outcomes for [COMPANY]'s key metric. Variables and assumed ranges: [FIGURES] (each uncertain input and its plausible distribution). </context> <task> 1. Recommend which inputs to model as distributions vs. hold fixed, and why. 2. Suggest an appropriate distribution type for each uncertain input (normal, triangular, uniform). 3. Describe the simulation setup conceptually (sampling, iterations, output collection). 4. Explain how to interpret the output distribution (mean, P10/P50/P90, probability of a threshold). 5. Caution where correlation between inputs would distort naive independent sampling. Frame this as setup guidance; all distributions reflect my assumptions and the results require my verification. </task>