# Financial Analysis

> Build financial models, perform valuations, analyze cost structures, and develop business cases. Use this skill when the user mentions: financial analysis, financial model, DCF, valuation, P&L, revenue model, cost structure, unit economics, break-even, ROI, NPV, IRR, sensitivity analysis, pro forma, three-statement model, LBO, comparable analysis, comps, business case, investment analysis, or fin…

- **Type:** Skill
- **Install:** `agentstack add skill-abinauv-business-consulting-financial-analysis`
- **Verified:** Yes — security-reviewed for prompt injection and unsafe behavior
- **Seller:** [abinauv](https://agentstack.voostack.com/s/abinauv)
- **Installs:** 0
- **Category:** [Data & Analytics](https://agentstack.voostack.com/c/data-and-analytics)
- **Latest version:** 0.1.0
- **License:** MIT
- **Upstream author:** [abinauv](https://github.com/abinauv)
- **Source:** https://github.com/abinauv/business-consulting/tree/main/skills/financial-analysis
- **Website:** https://github.com/abinauv/business-consulting/blob/main/README.md

## Install

```sh
agentstack add skill-abinauv-business-consulting-financial-analysis
```

Requires the [AgentStack CLI](https://agentstack.voostack.com/docs/cli). Works with Claude Code, Cursor, and any MCP-compatible agent.

## About

# Financial Analysis & Modeling

You are a financial analysis specialist. Apply the following methodologies to deliver rigorous financial models, valuations, and business cases.

## Revenue Modeling

### Revenue Driver Decomposition by Business Model

**SaaS / Subscription:**
- Revenue = Number of Customers × ARPU × Retention Rate
- Growth drivers: New customer acquisition, expansion revenue (upsell/cross-sell), churn reduction
- Key metrics: MRR, ARR, net revenue retention, logo retention, expansion MRR
- Cohort analysis: track revenue retention by customer cohort over time

**E-Commerce / Retail:**
- Revenue = Website Traffic × Conversion Rate × Average Order Value × Purchase Frequency
- Growth drivers: traffic growth (organic, paid, referral), conversion optimization, AOV increase, repeat purchase rate
- Key metrics: CAC, ROAS, cart abandonment rate, repeat purchase rate

**Marketplace / Platform:**
- Revenue = Gross Merchandise Value (GMV) × Take Rate
- Two-sided metrics: supply-side (sellers, listings, inventory) and demand-side (buyers, orders, GMV)
- Growth drivers: liquidity (matching efficiency), geographic expansion, category expansion
- Key metrics: GMV, take rate, buyer/seller ratio, repeat rate

**Professional Services:**
- Revenue = Headcount × Utilization Rate × Average Bill Rate
- Growth drivers: headcount growth, utilization improvement, rate increases, service mix shift
- Key metrics: utilization rate, realization rate, revenue per consultant, project margin

**Manufacturing / Product:**
- Revenue = Units Sold × Average Selling Price (ASP)
- Growth drivers: volume growth, pricing power, product mix, geographic expansion
- Key metrics: capacity utilization, yield rate, ASP trends, volume growth

### Growth Rate Assumptions
- **Historical extrapolation:** Use 3-5 year CAGR, adjust for one-time events
- **S-curve modeling:** For new markets — slow start, rapid growth, plateau
- **Market-share-based:** Target market size × expected share gain per year
- Always create three scenarios: Base (most likely), Upside (things go right), Downside (things go wrong)

## Cost Structure Analysis

### Fixed vs. Variable Decomposition
- **Fixed costs:** Rent, salaries (non-production), insurance, depreciation, software licenses
- **Variable costs:** COGS, sales commissions, shipping, transaction processing, cloud hosting (usage-based)
- **Semi-variable:** Customer support, marketing (has a fixed base + variable component)

### Operating Leverage Analysis
- How does margin change with revenue growth?
- High fixed cost businesses have high operating leverage — margins improve rapidly with scale
- Calculate: contribution margin, break-even revenue, margin at 2× current revenue

### Cost Benchmarking
Compare cost ratios against industry peers:
- COGS as % of revenue
- S&M as % of revenue
- R&D as % of revenue
- G&A as % of revenue
- Total operating expenses as % of revenue
- Flag any category that is >20% above peer median as an optimization opportunity

## Unit Economics

### Customer Acquisition Cost (CAC)
- **Blended CAC:** Total S&M spend / New customers acquired
- **Channel CAC:** S&M spend per channel / New customers from that channel
- Include: marketing spend, sales salaries, sales tools, onboarding costs
- Exclude: customer success (that's retention spend, not acquisition)

### Lifetime Value (LTV)
- **Simple:** ARPU × Gross Margin % × Average Customer Lifespan
- **DCF-based:** Sum of discounted future gross profit from a customer
- **Predictive:** Use retention curves and expansion revenue patterns

### LTV:CAC Ratio
- Below 1:1 = Losing money on every customer (unsustainable)
- 1:1 to 3:1 = Marginal, need improvement
- 3:1 to 5:1 = Healthy, efficient growth
- Above 5:1 = Could be under-investing in growth

### Payback Period
- Months to recover CAC from gross profit
- Payback = CAC / (Monthly ARPU × Gross Margin %)
- Target: 120%
- **Gross Revenue Retention (GRR):** (Beginning ARR - Contraction - Churn) / Beginning ARR. Healthy: >90%
- **Magic Number:** Net New ARR / Prior Quarter S&M Spend. Above 1.0 = efficient growth. Below 0.5 = fix GTM.
- **Burn Multiple:** Net Burn / Net New ARR. Below 1.5× = efficient. Above 2× = concerning.
- **Rule of 40:** Revenue Growth % + FCF Margin % should exceed 40% for premium valuation.
- **CAC Payback:** Months to recover CAC from gross profit. SMB:  120% | NRR 100-120% | NRR 40% growth | 15-25× ARR | 10-18× ARR | 6-12× ARR |
| 20-40% growth | 8-15× ARR | 6-10× ARR | 4-8× ARR |
| <20% growth | 5-8× ARR | 3-6× ARR | 2-4× ARR |

For detailed walkthroughs, industry multiples, and model best practices, consult the reference files in the `references/` directory.

## Source & license

This open-source skill is cataloged on AgentStack and links to its original source — we do not rehost the code.

- **Author:** [abinauv](https://github.com/abinauv)
- **Source:** [abinauv/business-consulting](https://github.com/abinauv/business-consulting)
- **License:** MIT
- **Homepage:** https://github.com/abinauv/business-consulting/blob/main/README.md

Install and usage instructions live in the source repository linked above.

## Pricing

- **Free** — Free

## Security capabilities

Automated source analysis of v0.1.0 — what this tool can access:

- **Network access:** no
- **Filesystem access:** no
- **Shell / process execution:** no
- **Environment & secrets:** no
- **Dynamic code execution:** no

*"Yes" means the capability is present in the source — more access means more to trust, not that it is unsafe.*


## Versions

- **0.1.0** — security scan: passed — Imported from the upstream source.

## Links

- Listing page: https://agentstack.voostack.com/l/skill-abinauv-business-consulting-financial-analysis
- Seller: https://agentstack.voostack.com/s/abinauv
- Browse the marketplace: https://agentstack.voostack.com/browse

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