{{company_name}}
Company Name
Example: Example: Northstar Engineering Ltd.
Enter the name of the company being assessed.
Ready to Use
Complete Prompt
This prompt has variables that can be replaced with your own information. Copy and use it with your preferred LLM, or try it out in the LearnerBox Prompt Playground.
Act as a senior financial analyst specializing in liquidity, leverage, and solvency analysis.
Assess the company’s short-term liquidity and long-term solvency using the information provided below.
Company:
{{company_name}}
Industry:
{{industry}}
Analysis period:
{{analysis_period}}
Balance-sheet data:
{{balance_sheet}}
Income-statement data:
{{income_statement}}
Cash-flow data:
{{cash_flow_statement}}
Debt, facility, and covenant information:
{{debt_information}}
Cash forecast and upcoming obligations:
{{cash_forecast}}
Economic and financing context:
{{economic_context}}
Analysis requirements:
1. Check the completeness, currency, units, dates, and consistency of the supplied data.
2. Analyze short-term liquidity using:
- working capital;
- current ratio;
- quick ratio;
- cash ratio;
- operating cash flow to current liabilities;
- available cash;
- unused committed facilities; and
- timing of upcoming obligations.
3. Evaluate the quality and convertibility of current assets, including:
- cash restrictions;
- receivable ageing;
- inventory ageing;
- recoverability of other current assets; and
- concentration risks.
4. Analyze long-term solvency using:
- total debt;
- net debt;
- debt-to-equity;
- debt-to-assets;
- net debt to EBITDA, where available;
- interest coverage;
- fixed-charge coverage;
- operating cash flow to debt;
- free cash flow after debt service; and
- debt maturity profile.
5. Assess whether debt-service capacity is supported by recurring operating cash flow.
6. Review:
- covenant thresholds;
- covenant headroom;
- security and guarantees;
- variable versus fixed interest exposure;
- refinancing dates;
- concentration of lenders;
- currency mismatch;
- committed versus uncommitted facilities; and
- restrictions on distributions or additional borrowing.
7. Distinguish between:
- temporary liquidity pressure;
- structural working-capital weakness;
- excessive leverage;
- refinancing risk;
- interest-rate risk;
- covenant risk; and
- fundamental solvency concern.
8. Develop three analytical scenarios where sufficient data is supplied:
- base case;
- moderate downside; and
- severe but plausible downside.
9. Under each scenario, assess:
- minimum cash balance;
- facility usage;
- debt-service capacity;
- covenant headroom;
- refinancing need; and
- possible management actions.
10. Identify all assumptions and do not present scenario outputs as forecasts.
11. Do not infer insolvency, going-concern failure, or covenant breach without sufficient evidence and applicable professional review.
12. Do not invent debt terms, benchmark thresholds, facility availability, or legal conclusions.
Present the result as:
{{output_format}}
Include:
- an executive liquidity and solvency assessment;
- data and assumption note;
- liquidity-ratio table;
- current-asset quality review;
- debt and leverage analysis;
- interest and fixed-charge coverage;
- debt-maturity profile;
- covenant-headroom assessment;
- base and downside scenarios;
- key strengths;
- major vulnerabilities;
- warning indicators;
- information requests;
- management actions for consideration; and
- a carefully qualified conclusion.Customization Variables
Replace each variable shown in double curly brackets with accurate information from your own professional context.
{{industry}}
Industry
Example: Example: Capital-intensive engineering services
Industry context affects working-capital needs, leverage tolerance, and cash-flow volatility.
{{analysis_period}}
Analysis Period
Example: Example: As at 31 March 2026, with FY2024–FY2026 comparisons
Include the assessment date and comparative periods.
{{balance_sheet}}
Balance-Sheet Data
Example: Paste current and non-current assets, liabilities, equity, cash, receivables, inventory, and debt.
Provide sufficient detail to calculate liquidity and leverage indicators.
{{income_statement}}
Income-Statement Data
Example: Paste revenue, operating profit, EBITDA, finance costs, tax, and net income.
Income data supports interest and fixed-charge coverage analysis.
{{cash_flow_statement}}
Cash-Flow Data
Example: Paste operating cash flow, capital expenditure, financing cash flows, and free cash flow.
Cash-flow information is essential for assessing actual debt-service capacity.
{{debt_information}}
Debt, Facility, and Covenant Information
Example: List lenders, balances, interest rates, maturities, security, guarantees, facilities, covenants, and headroom.
Detailed debt terms materially improve the solvency and refinancing assessment.
{{cash_forecast}}
Cash Forecast and Upcoming Obligations
Example: Paste forecast receipts, payments, debt service, tax, payroll, dividends, and major capital expenditure.
Add timing information for near-term obligations and expected cash inflows.
{{economic_context}}
Economic and Financing Context
Example: Example: Rising interest rates, tighter credit conditions, and currency depreciation.
External conditions can materially affect debt service and refinancing capacity.
{{output_format}}
Output Format
Choose the format that best matches the intended decision maker.
Expected Output
A comprehensive liquidity and solvency review containing transparent calculations, asset-quality observations, debt and covenant analysis, downside scenarios, refinancing risks, management actions, information gaps, and a qualified conclusion.
💡 Important:
The quality of the result depends on the
completeness, accuracy, and relevance of the
information supplied to the AI.
Prompt Characteristics
These characteristics describe the type of thinking, customization, and output structure involved in using this prompt effectively.
Prompt Anatomy
This breakdown explains how the prompt’s major components work together to guide the AI toward a useful, reliable, and well-structured response.
Role
Positions the AI as a senior analyst specializing in liquidity, leverage, and solvency.
Context
Combines financial statements, debt terms, covenants, cash forecasts, obligations, and economic conditions.
Task
Requires integrated assessment of short-term liquidity, long-term debt capacity, and downside resilience.
Constraints
Prevents unsupported insolvency, going-concern, covenant, legal, and forecast conclusions.
Output Structure
Requires ratio tables, debt profile, covenant review, scenarios, risks, actions, and qualified conclusion.
Input Variables
Company, industry, analysis period, financial statements, debt information, cash forecast, economic context, and output format.
Customization Tips
- Include debt maturities, interest rates, security, guarantees, and covenant thresholds.
- Provide a short-term cash forecast rather than relying only on a single balance-sheet date.
- Add receivable and inventory ageing to evaluate the real convertibility of current assets.
- State committed and uncommitted facility limits, current usage, and remaining availability.
- Provide scenario assumptions explicitly so stress results are not mistaken for forecasts.
Responsible Professional Use
Review Before Applying the Output
AI-generated responses can contain errors, omissions, unsupported assumptions, outdated information, or recommendations that do not reflect your jurisdiction or professional context.
Verify calculations, evidence, regulations, standards, policies, and professional recommendations before relying on the result. The qualified professional remains responsible for the final decision.