financial-statement

Reconcile income statement, balance sheet, and cash flow to assess earnings quality.

Updated May 5, 2026
One-click install
npx skills add https://github.com/wudye/traderAssistHK --skill financial-statement-wudye
Or copy as Structured Prompt for Agent
Please help me install this Agent Skill.
Skill: financial-statement
Source: https://github.com/wudye/traderAssistHK/tree/main/backend/src/skills/financial-statement
Command: npx skills add https://github.com/wudye/traderAssistHK --skill financial-statement-wudye

SYSTEM DOCUMENTATION & REQUIREMENTS

What problem does it solve?

This Skill helps you detect whether a company’s reported earnings are backed by real cash, by analyzing the three financial statements together and flagging common manipulation patterns.

Core Features & Use Cases

  • Tri-statement cross-checks: Connect profit statement results to balance sheet balances and cash flow reconciliation to validate consistency.
  • Earnings quality analysis: Compare accruals vs cash (e.g., CFO vs net income) to assess profitability reliability.
  • DuPont decomposition: Break ROE into profitability, operating efficiency, and leverage drivers for clearer attribution.
  • Financial fraud red-flag scanning: Identify high-risk signals such as “cash and debt both high,” receivables surging, negative operating cash flow with positive profits, and other heuristics.
  • Use Case: Before investing or underwriting, feed the company’s A-share/IFRS financials and generate a structured evaluation report covering profitability quality, DuPont drivers, and a red-flag risk summary.

Quick Start

Use the financial-statement skill to produce a three-statement earnings-quality report and fraud red-flag checklist for the target company based on its financial statements.

Frequently Asked Questions about financial-statement

High-intent search queries and answers about installing and using this skill.

FAQPage Schema
How do I check earnings quality by reconciling financial statements?

Earnings quality analysis validates profitability reliability by comparing accruals versus cash flow, specifically contrasting CFO against net income, and running tri-statement cross-checks to ensure profit statement results match balance sheet balances.

What is DuPont analysis and how does it break down ROE drivers?

DuPont decomposition breaks ROE into profitability, operating efficiency, and leverage drivers, providing clearer attribution to support investment diligence, equity screening, and profitability analysis workflows.

How do I detect financial statement fraud red flags before investing?

Detect financial fraud red flags by scanning for high-risk signals such as cash and debt both being high, receivables surging, or negative operating cash flow with positive profits to perform fraud-risk triage.

Can I use this financial statement analysis for A-share and IFRS companies?

Yes, this financial statement analysis applies to A-share and IFRS financials for typical non-bank and insurance companies, generating a structured evaluation report covering profitability quality, DuPont drivers, and a red-flag risk summary.

What is the best way to triage fraud risk during equity screening?

The best way to triage fraud risk during equity screening is computing key ratios and consistency checks like accrual proxies and cash change reconciliation to output a structured red-flag risk assessment.

Why does positive net income not match operating cash flow?

Positive net income not matching operating cash flow indicates poor earnings quality where profits are driven by accruals rather than cash, a pattern identified during tri-statement reconciliation and fraud red-flag scanning.