Financial Analyst Skill

Financial Analyst Skill

Overview

Production-ready financial analysis toolkit providing ratio analysis, DCF valuation, budget variance analysis, and rolling forecast construction. Designed for financial analysts with 3-6 years experience performing financial modeling, forecasting & budgeting, management reporting, business performance analysis, and investment analysis.

Use when

• The user asks to "run financial ratios", "build a DCF", "analyze budget variance", or "build a forecast"
• A valuation range is needed for an acquisition, fundraise, or board presentation
• Actuals vs budget needs investigation (which variances are material, favorable/unfavorable, department breakdown)
• A rolling 13-week cash flow or driver-based revenue forecast needs construction
• Sensitivity analysis is required to stress-test valuation or forecast assumptions
• The user asks about profitability, liquidity, leverage, efficiency, or valuation metrics with industry context

Clarify First

Before the analysis, confirm these inputs. If any is unknown or vague, ASK — do not assume:

• Which analysis — ratios, DCF valuation, budget variance, or forecast (selects the tool and the required input schema; each needs different data)
• The decision it supports — acquisition, fundraise, board review, or budget reforecast (sets the executive-summary conclusion and which metrics lead)
• Materiality threshold — absolute $ or % of budget (drives which variances surface vs. go to the appendix; default 10% / $50K)
• Key assumptions + as-of date — WACC inputs, terminal growth, or forecast drivers and when each was last sourced (drives DCF/forecast outputs and the assumptions appendix)

Stop rule: ask only the 2-3 that most change the output. If the user says "just draft it," proceed and list your assumptions at the top of the artifact.

5-Phase Workflow

Phase 1: Scoping

• Define analysis objectives and stakeholder requirements
• Identify data sources and time periods
• Establish materiality thresholds and accuracy targets
• Select appropriate analytical frameworks
• Validate: materiality threshold is explicit (absolute $ or %), accuracy target is a number, and the decision the analysis supports is named

Phase 2: Data Analysis & Modeling

• Collect and validate financial data (income statement, balance sheet, cash flow)
• Calculate financial ratios across 5 categories (profitability, liquidity, leverage, efficiency, valuation)
• Build DCF models with WACC and terminal value calculations
• Construct budget variance analyses with favorable/unfavorable classification