balance sheet stress scanner

The problem

Manual financial analysis is prone to oversight, especially when tracking multi-year trends across dozens of line items. Developers and analysts often miss subtle liquidity drains or solvency shifts hidden in dense 10-K filings.

What it does

• Calculates critical liquidity, solvency, and working capital ratios across 3 to 5 historical periods.
• Automates benchmark comparisons against industry standards to identify statistical outliers.
• Identifies specific red flags like current ratio decay, quick ratio depletion, and interest coverage erosion.
• Classifies overall financial health into risk tiers from Low to Critical.
• Generates structured Markdown reports with actionable next steps for due diligence.

Why this beats prompting it yourself

This skill enforces a rigid mathematical framework that prevents the LLM from "hallucinating" health where numbers suggest stress. It ensures consistent formula application for complex ratios like Interest Coverage and Quick Ratios that generic prompts often calculate incorrectly.

Use cases

• Conducting financial due diligence for M&A or investment opportunities.
• Performing rapid creditworthiness assessments for lending or vendor onboarding.
• Automating internal quarterly financial health checkups.
• Auditing 10-K and annual report data for hidden solvency risks.

Known limitations

Requires consistent currency and units across all input periods. Relies on the accuracy of provided EBIT and EBITDA figures for coverage calculations.