Financial Analyst

Description

Performs financial ratio analysis, DCF valuation, budget variance analysis, and rolling forecast construction for strategic decision-making. Use when analyzing financial statements, building valuation models, assessing budget variances, or constructing financial projections and forecasts. Also applicable when users mention financial modeling, cash flow analysis, company valuation, financial pro...

What this skill does

1. 1Validates input data completeness before running calculations, then computes ratios across five categories with industry benchmark comparisons.
2. 2Produces DCF enterprise and equity valuation with WACC, terminal value via perpetuity growth and exit multiple, and sensitivity analysis.
3. 3Generates executive-level variance reports identifying material deviations with root cause analysis and department breakdown.
4. 4Builds driver-based rolling forecasts with three scenarios, trend analysis, and explicit assumption documentation.
5. 5Tracks forecast accuracy over trailing quarters and refines assumptions based on variance between projections and actuals.

When to use

• A company or acquisition target needs a valuation range with methodology stated and assumptions documented.
• Quarterly reporting requires a budget variance report explaining every material deviation from plan.
• Revenue or expense forecasts need to be constructed with scenario modeling for a management or board presentation.
• Financial ratios need to be computed and benchmarked before a fundraising or strategic review conversation.

Frequently asked questions