financial-analysis

Validate that the three statements share scope, period, and currency, then compute growth, margin, liquidity, leverage, and efficiency ratios using average balances. Check cross-statement linkages like AR versus revenue and OCF versus net income, and test alternative explanations before drawing conclusions.

DSO equals average AR divided by credit revenue times days, DIO equals average inventory divided by COGS times days, and DPO equals average AP divided by purchases times days. The cash conversion cycle is DSO plus DIO minus DPO, and seasonal businesses should use same-quarter or monthly averages.

ROE becomes distorted when average equity approaches zero or turns negative, producing extreme or meaningless values. In those cases report NM and explain performance using absolute returns and capital structure instead of the ratio.

No. The Skill explicitly excludes securities recommendations, personal investment advice, formal credit decisions, audit opinions, and fraud conclusions. Anomaly outputs are investigation signals with evidence and alternative explanations, not final determinations.

Missing fields are marked Not available rather than filled with zero, and growth or CAGR on zero or negative bases is shown as NM. If statements cannot be tied out or definitions cannot be aligned, the analysis stops or is limited to ranges instead of precise rankings.