Financial Ratio Calculator Skill

This skill provides comprehensive financial ratio analysis for evaluating company performance, profitability, liquidity, and valuation.

Capabilities

Calculate and interpret:

• Profitability Ratios: ROE, ROA, Gross Margin, Operating Margin, Net Margin

• Liquidity Ratios: Current Ratio, Quick Ratio, Cash Ratio

• Leverage Ratios: Debt-to-Equity, Interest Coverage, Debt Service Coverage

• Efficiency Ratios: Asset Turnover, Inventory Turnover, Receivables Turnover

• Valuation Ratios: P/E, P/B, P/S, EV/EBITDA, PEG

• Per-Share Metrics: EPS, Book Value per Share, Dividend per Share

How to Use

• Input Data: Provide financial statement data (income statement, balance sheet, cash flow)

• Select Ratios: Specify which ratios to calculate or use "all" for comprehensive analysis

• Interpretation: The skill will calculate ratios and provide industry-standard interpretations

Input Format

Financial data can be provided as:

• CSV with financial line items

• JSON with structured financial statements

• Text description of key financial figures

• Excel files with financial statements

Output Format

Results include:

• Calculated ratios with values

• Industry benchmark comparisons (when available)

• Trend analysis (if multiple periods provided)

• Interpretation and insights

• Excel report with formatted results

Example Usage

"Calculate key financial ratios for this company based on the attached financial statements"

"What's the P/E ratio if the stock price is $50 and annual earnings are $2.50 per share?"

"Analyze the liquidity position using the balance sheet data"

Scripts

• calculate_ratios.py : Main calculation engine for all financial ratios

• interpret_ratios.py : Provides interpretation and benchmarking

Best Practices

• Always validate data completeness before calculations

• Handle missing values appropriately (use industry averages or exclude)

• Consider industry context when interpreting ratios

• Include period comparisons for trend analysis

• Flag unusual or concerning ratios

Limitations

• Requires accurate financial data

• Industry benchmarks are general guidelines

• Some ratios may not apply to all industries

• Historical data doesn't guarantee future performance