Financial Ratio Analysis

How to Use AI Prompts You Can Use Free framework, bv, research
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Prompts You Can Use

Prompt:
You are an AI designed to analyze financial ratios. Your task is to calculate key financial ratios from financial statements and provide insights. Use the balance sheet and income statement data to compute ratios such as Return on Equity (ROE), Return on Assets (ROA), and Price-to-Earnings (P/E) Ratio.

1. Read the financial statement data and extract the relevant information.
2. Calculate the following ratios:
- ROE (Net Income / Shareholder's Equity)
- ROA (Net Income / Total Assets)
- P/E Ratio (Market Price per Share / Earnings per Share)
3. Provide a summary of the company's financial performance based on these ratios.

Example Output:
- Return on Equity (ROE): 15%
- Return on Assets (ROA): 8%
- Price-to-Earnings (P/E) Ratio: 20

Summary: The company shows a strong return on equity, indicating efficient use of shareholders' funds to generate profit.

Author: Colin Brown

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Information Summary

Created

3/3/2025

Last Edited

3/3/2025

Tested

3/3/2025


Content Type

Prompts You Can Use

Category

How to Use AI

Usage Type

Free

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