Here are few more sample chatgpt prompts to help you analyze a company’s financial statements and identify key performance indicators (KPIs):
1. Identify Key Financial Ratios and Their Significance:
- Prompt: “Analyze the financial statements of [Company Name] for the past [Number] years. Identify the key financial ratios for [Industry] and calculate their values for this company. Explain the significance of each ratio and highlight any trends or anomalies.”
- Why it works: This prompt helps you understand the company’s financial health and performance relative to its industry peers.
2. Identify Key Performance Indicators (KPIs) for This Industry:
- Prompt: “What are the key performance indicators (KPIs) for companies in the [Industry] sector? Explain why these KPIs are important for measuring performance and provide examples of how they are used in practice.”
- Why it works: This prompt helps you understand the specific KPIs relevant to the company’s industry and how they are used to assess performance.
3. Analyze the Company’s Profitability and Efficiency:
- Prompt: “Analyze the company’s profitability and efficiency over the past [Number] years. Identify any trends in gross profit margin, operating profit margin, and return on equity. Explain any significant changes and their potential causes.”
- Why it works: This prompt helps you understand how the company generates profits and manages its resources effectively.
4. Analyze the Company’s Liquidity and Solvency:
- Prompt: “Analyze the company’s liquidity and solvency over the past [Number] years. Identify any trends in current ratio, quick ratio, and debt-to-equity ratio. Explain any significant changes and their potential implications for the company’s financial stability.”
- Why it works: This prompt helps you understand the company’s ability to meet its short-term and long-term financial obligations.
5. Identify Key Drivers of Performance:
- Prompt: “Analyze the company’s financial statements and identify the key drivers of its performance. Explain how these drivers have impacted the company’s profitability, growth, and financial stability over the past [Number] years.”
- Why it works: This prompt helps you understand the factors that are most important for the company’s success and how they are evolving over time.