Creating financial snapshot briefs with prompts

Creating financial snapshot briefs can be a great way to provide concise, informative updates on a company’s or individual’s financial situation. These briefs typically summarize key financial metrics and trends. Here’s a breakdown of the prompts that can help generate such briefs:

1. Revenue and Profit Analysis

• Prompt: “Provide a breakdown of the revenue growth or decline, and the impact on profitability. Include comparisons to previous periods and industry benchmarks.”

• Key Metrics to Include:

  • Total revenue

  • Net income (or net profit margin)

  • EBITDA (if applicable)

  • YoY (year-over-year) or QoQ (quarter-over-quarter) growth

2. Cash Flow Overview

• Prompt: “Summarize the cash flow situation, including operating, investing, and financing activities. Highlight any significant changes in cash flow compared to prior periods.”

• Key Metrics to Include:

  • Cash flow from operations

  • Free cash flow

  • Cash reserves

  • Changes in debt levels (if applicable)

3. Debt and Equity Structure

• Prompt: “Outline the company’s debt-to-equity ratio, major debt obligations, and any recent financing activities (e.g., issuing new equity, refinancing).”

• Key Metrics to Include:

  • Debt-to-equity ratio

  • Long-term vs. short-term debt

  • Recent stock issuance or repurchase programs

4. Profitability Ratios

• Prompt: “Provide a snapshot of key profitability ratios such as gross margin, operating margin, and return on equity. Compare against industry averages or historical performance.”

• Key Metrics to Include:

  • Gross margin

  • Operating margin

  • Return on assets (ROA) and return on equity (ROE)

5. Market Performance and Stock Trends

• Prompt: “Summarize the company’s stock performance over the past period. Include price movement, trading volume, and any factors influencing the stock price.”

• Key Metrics to Include:

  • Stock price performance (up/down %)

  • Trading volume changes

  • Price-to-earnings (P/E) ratio

  • Dividend yield (if applicable)

6. Operating Efficiency

• Prompt: “Describe the company’s efficiency in utilizing its assets and managing operating costs. Include key performance indicators like inventory turnover or days sales outstanding (DSO).”

• Key Metrics to Include:

  • Inventory turnover

  • Days sales outstanding (DSO)

  • Asset turnover ratio

7. Sector and Industry Comparison

• Prompt: “Compare the company’s financial performance against peers or industry averages. Highlight strengths or areas for improvement relative to competitors.”

• Key Metrics to Include:

  • Key financial ratios (e.g., P/E, debt ratios)

  • Revenue growth in the industry

  • Market share comparison

8. Risk Factors

• Prompt: “Identify key financial risks, including market volatility, foreign exchange risks, or economic factors that may impact financial performance.”

• Key Metrics to Include:

  • Sensitivity to market trends

  • Foreign exchange exposure

  • Regulatory risks

9. Forecast and Outlook

• Prompt: “Provide an outlook for the next quarter/year based on current financial data. Highlight expectations for revenue, profit, and major cost factors.”

• Key Metrics to Include:

  • Projected revenue and earnings

  • Key growth drivers (e.g., new product launches)

  • Cost-saving initiatives

10. Financial Health and Liquidity

• Prompt: “Provide a snapshot of the company’s financial health, including liquidity ratios like the current ratio or quick ratio. Highlight any concerns or strengths in the company’s liquidity.”

• Key Metrics to Include:

  • Current ratio

  • Quick ratio

  • Working capital

These prompts can be customized to focus on particular aspects depending on the purpose of the financial snapshot. They help in delivering a well-rounded financial summary that can be digested quickly by investors, stakeholders, or decision-makers. Would you like more detail on how to structure one of these sections?