Corporate Financial Analysis

Problem

Corporate statements often arrive as PDF or Excel files, and manual analysis can mix period-end balances with averages, ignore nonrecurring items, or judge metrics without industry context. This skill turns CAS-based statements into a verifiable metric workflow for financial diagnosis.

How it works

Core coverage includes DuPont decomposition, solvency, operations, profitability, cash-flow quality, Z-Score, and EVA.
- Data extraction: reads three statements or a trial balance; full eight-step analysis runs when all three statements are available.
- Metric calculation: uses ROE = net margin x asset turnover x equity multiplier and average balances for turnover days.
- Risk diagnosis: cross-checks operating cash flow, interest-bearing debt, receivables/inventory turns, and EVA.
- Report output: includes formulas, benchmark applicability, warning signals, and validation notes.

Boundaries

Industry benchmarks are reference only, Z-Score fits manufacturing better, and EVA requires explicit WACC assumptions; one weak metric should not be treated as a standalone crisis signal.