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Interpret the three core financial statements (income statement, balance sheet, cash flow statement) to assess business health and performance. Use this skill when the user needs to read financial statements, understand profitability vs cash flow, evaluate a company's financial position, or prepare for investor/board meetings — even if they say 'explain these financials', 'are we making money', 'read this annual report', or 'what do these numbers mean'.
npx skill4agent add asgard-ai-platform/skills data-financial-analysisIRON LAW: Read All Three Statements Together
A company can be profitable (Income Statement) but cash-poor (Cash Flow Statement).
A company can have high assets (Balance Sheet) funded entirely by debt.
Reading one statement alone gives an incomplete — and potentially misleading — picture.
ALWAYS read all three and check for consistency.| Red Flag | What It Means |
|---|---|
| Revenue growing but operating cash flow declining | Possible revenue recognition issues, rising receivables |
| Net income positive but free cash flow negative | Earnings driven by accruals, not cash; heavy capex |
| Assets growing faster than revenue | Inefficient asset utilization |
| Debt growing faster than equity | Increasing leverage risk |
| Inventory growing faster than revenue | Possible obsolescence, demand slowdown |
# Financial Statement Analysis: {Company} — {Period}
## Income Statement Highlights
| Metric | Current | Prior Year | Change |
|--------|---------|-----------|--------|
| Revenue | ${X} | ${X} | {%} |
| Gross Margin | {%} | {%} | {±pp} |
| Operating Margin | {%} | {%} | {±pp} |
| Net Income | ${X} | ${X} | {%} |
## Balance Sheet Highlights
| Metric | Current | Prior Year |
|--------|---------|-----------|
| Total Assets | ${X} | ${X} |
| Total Debt | ${X} | ${X} |
| D/E Ratio | {X} | {X} |
| Current Ratio | {X} | {X} |
## Cash Flow Highlights
| Category | Amount |
|----------|--------|
| Operating CF | ${X} |
| Investing CF | ${X} |
| Financing CF | ${X} |
| Free Cash Flow | ${X} |
## Red Flags
- {any detected}
## Overall Assessment
{Financial health verdict with key rationale}