Skill in 《Understanding Financial Statements》

Skill.md

name: analyzing-financial-reports
description: >
  Analyzes Chinese public company financial statements (balance sheet, income statement, cash flow)
  to assess asset quality, profit authenticity, cash flow health, solvency, and overall investment value.
  Use when the user provides financial data or a company name and asks whether financials are healthy,
  whether profits are real, whether there are red flags, or whether the company is a good investment.
  Based on the book "一本书读懂财报" by Xiao Xing (Tsinghua University).
license: Skill distillation for personal/educational use. Do not reproduce source passages verbatim.

Skill: Financial Statement Analysis — Asset, Profit & Cash Flow Quality

Knowledge source: Understanding Financial Statements by Xiao Xing, Professor at Tsinghua University School of Economics and Management, revised 2019 Architecture: This file is the master orchestrator; each analysis module runs as an independent subskill.

SKILL.md (master orchestrator — you are here)
└── subskills/
    ├── m1_industry_analysis/         ← Industry context analysis
    │   ├── module.md
    │   └── references/case_library.md
    ├── m2_asset_debt_analysis/       ← Asset quality check
    │   ├── module.md
    │   └── references/case_library.md
    ├── m3_profit_analysis/           ← Profit authenticity verification
    ├── m4_cashflow_analysis/         ← Cash flow health diagnosis
    ├── m5_solvency_analysis/         ← Turnover ratios and solvency
    └── m6_roic_analysis/             ← Good-company composite verdict

Skill Purpose

Help users identify the true quality of a company through its three financial statements:

• Are the assets sound? — What do the balance sheet figures actually represent?
• Are the profits real? — Was income earned, or manufactured?
• Is cash flow healthy? — Is the lifeblood of the business flowing normally?

Core principles (applied across all subskills):

• Any financial number is only meaningful in the context of its industry
• The goal of analysis is the underlying business reality, not the numbers themselves
• Key judgments must be supported by book case studies, found in each subskill's references/case_library.md

When to Use

Trigger this skill whenever a user:

• Provides a company name or ticker and asks whether its financials are healthy
• Provides financial data and wants to know whether a metric looks normal
• Wants to identify red flags or signs of earnings manipulation
• Wants a holistic investment quality assessment across all three financial statements

Routing Rules

Upon receiving a user question, use the table below to decide which subskills to invoke:

Execution rules:

1. M1 is almost always the first step — it provides the industry baseline for all other subskills
2. Each subskill's output feeds into the next subskill as input
3. If the user's data is insufficient, ask first — never fill gaps with assumptions
4. For narrow questions, call only the relevant modules; do not run the full pipeline by default

How to Execute

To invoke a subskill, Read its module.md and follow the steps inside:

Invoke M1 → Read subskills/m1_industry_analysis/module.md
Invoke M2 → Read subskills/m2_asset_debt_analysis/module.md
Invoke M3 → Read subskills/m3_profit_analysis/module.md
Invoke M4 → Read subskills/m4_cashflow_analysis/module.md
Invoke M5 → Read subskills/m5_solvency_analysis/module.md
Invoke M6 → Read subskills/m6_roic_analysis/module.md

Book case studies are stored in each subskill's own references/case_library.md; the subskill will Read that file itself when looking for supporting evidence.

Multi-Module Output Format

---
The following analysis is powered by the Understanding Financial Statements skill — for educational use only.
---

━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
 [Company Name] Financial Statement Analysis
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[M1 Industry Context]
... (industry baseline report)

[M2 Asset Quality] (if applicable)
...

[M3 Profit Authenticity] (if applicable)
...

[M4 Cash Flow Health] (if applicable)
...

[M5 Solvency] (if applicable)
...

[M6 Composite Verdict] (if applicable)
...

━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
 Risk Signal Summary
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
🔴 High risk: [list]
🟡 Watch closely: [list]
🟢 Performing well: [list]

━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
 What additional data is needed?
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
[List any analysis items that could not be completed due to missing data]

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The following analysis is powered by the Understanding Financial Statements skill — for educational use only.
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Subskill Status

All subskills are ready — invoke the relevant modules per the routing table above.