Explaining how to analyze financial statements using ChatGPT! Examples of prompts are also introduced

ChatGPT empowers corporate financial analysis: efficient, accurate, time-saving

Accurate financial analysis is the key to formulating a business strategy. However, traditional financial data analysis is time-consuming and requires expertise. The emergence of ChatGPT provides an effective solution to this puzzle.

This article will provide detailed descriptions on how to use ChatGPT to perform complex financial analysis efficiently. Whether it is the free version (GPT-3.5) or the paid version of ChatGPT Plus (GPT-4), it can be competent for financial analysis tasks, while GPT-4 can significantly improve the speed and automation level and greatly improve the financial analysis process. We will explain in detail from building prompt words to analyzing specific indicators, combining specific cases to help you improve the quality of financial analysis.

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Table of contents

ChatGPT application case in financial analysis

ChatGPT-4 Financial Analysis Method

ChatGPT-4 Financial Analysis Tips Example

ChatGPT-3.5 Financial Analysis Method

ChatGPT-3.5 Financial Analysis Tips Example

ChatGPT Financial Analysis Tips Word Template

Competition analysis and performance forecast words

Balance sheet (B/S) analysis prompt words

Profit and Loss Statement (P/L) Analysis Tips

Summarize

ChatGPT application case in financial analysis

Financial analysis is a key process for companies to understand their own operating conditions and assist in decision-making.

Many businesses are using ChatGPT to improve work efficiency and reduce human error.

ChatGPT's PDF reading ability has been significantly improved. After uploading financial statements, you can directly conduct financial analysis and key points extraction!

The figure is an example of the results of analyzing CyberAgent's latest financial reports using ChatGPT. pic.twitter.com/xnZW2i31dK

— KAJI | Kento Kajitani (@kajikent) November 15, 2023

Compared with traditional manual analysis, ChatGPT significantly shortens time and labor costs and reduces human error.

With GPT-4, its powerful language processing power can explain analysis results more clearly, and can be easily understood by non-financial professionals.

ChatGPT-4 Financial Analysis Method

This section will explain how to use ChatGPT for financial analysis. Both the free version of "GPT-3.5" and the paid version of "GPT-4" can be achieved, but GPT-4 can significantly simplify the process.

In particular, the multimodal functions provided by ChatGPT Plus can achieve more efficient and accurate financial analysis. This function allows users to directly upload financial statements and report pictures, and the system will automatically extract, analyze data and draw conclusions.

[Related Articles] ➡️Comparison between the free version of ChatGPT and the paid version: Model features and application cases

ChatGPT-4 Financial Analysis Tips Example

We will demonstrate how to use GPT-4 to analyze the financial statements of both companies.

Sample analysis of financial statements of Sumitomo Mitsui Financial Group

1. Upload financial statements and use the following prompt words: "Please analyze this financial statement." GPT-4 prompt word example

2. The system will return the following analysis results: Example of GPT-4 analysis results

Microsoft Corporate Financial Statements Analysis Example

1. Similar to the above example, create a prompt word. If the financial statements of competitors are analyzed in non-Japanese, just issue instructions and the system will automatically translate them. GPT-4 prompt word example

2. For more in-depth analysis, add the following prompt words: "Please add your insights." The system will return more detailed analysis results: Example of GPT-4 analysis results

The rapid analysis capabilities of GPT-4 are impressive. ChatGPT Plus's unique PDF analysis feature is extremely attractive.

ChatGPT-3.5 Financial Analysis Method

This section describes how to analyze financial statements using only ChatGPT Free Edition (GPT-3.5). The free version of ChatGPT can also perform financial analysis by accurately entering financial information and building appropriate prompt words.

However, since the free version lacks PDF, image and other file reading functions, users need to manually enter financial data into prompt words, which is more time-consuming and labor-intensive than the GPT-4 image processing function.

ChatGPT-3.5 Financial Analysis Tips Example

We will use the free version of ChatGPT to analyze the financial statements of Sumitomo Mitsui Financial Group.

Sample Analysis of Financial Statements of Sumitomo Mitsui Financial Group (Free Edition ChatGPT)

Step 1. Create a prompt word and manually enter the company's financial statement information. Similar to the paid version, instructions such as "Please analyze this financial statement" can be used. Free version of ChatGPT prompt word example

Step 2. The system will return the analysis results.

Step 3. Add the prompt word: "Please add your insights." The system will return more detailed analysis results.

The free version of ChatGPT can be used for financial analysis, but manually entering data is time-consuming and error-prone.

ChatGPT Financial Analysis Tips Word Template

Creating a prompt word template can improve financial analysis efficiency. Here is a free version of ChatGPT Financial Analysis Tips Template:

Free version of ChatGPT Financial Analysis Tips Template

<code>请根据以下信息进行财务分析：资产负债表：公司名称：报告日期：资产总计：负债总计：股东权益总计：现金及现金等价物：总资产：总负债及股东权益：损益表：公司名称：期间（起始日-结束日）：营业收入：营业成本：毛利：销售费用及管理费用：税前利润：所得税：净利润：请补充您的见解。</code>

Competition analysis and performance forecast words

This section provides examples of prompt words for competitor financial data analysis and future performance forecasts.

The paid version can directly upload financial statements; the free version requires manually entering competitors' financial data and industry trend data according to the method in the previous section, and then use the following prompt words:

• Please compare the financial data of competitors and our company based on this information and conduct a competitive analysis.
• Please compare these financial ratios and conduct a competitive analysis based on the differences from competitors.
• Please gain insights about competitiveness based on this information through comparison with the industry as a whole and competitors.

Balance sheet (B/S) analysis prompt words

This section introduces the prompt words and key points for analyzing the balance sheet (B/S).

Understanding the balance sheet can clearly grasp the company's financial situation and help avoid risks.

When analyzing the balance sheet, it is necessary to clarify the items to be evaluated. Data accuracy is crucial.

Prompt word example

• Please analyze the company's balance sheet in the attachment and evaluate its financial health and capital structure.
• Please evaluate the company's productivity and security based on the company's balance sheet in the attachment.

Profit and Loss Statement (P/L) Analysis Tips

This section introduces the prompt words and key points for analyzing the income statement (P/L).

The profit and loss statement reflects the company's operating performance for one year and is crucial to formulating future business strategies.

When analyzing the income statement, it is necessary to clarify the items to be evaluated.

Prompt word example

• Please evaluate the company's profitability and make future business strategy suggestions based on the company's profit and loss statement in the attachment.

Summarize

This article describes how to use ChatGPT to improve financial analysis efficiency and reduce costs. The free version of ChatGPT allows financial analysis with precise prompt words, but there are some limitations. The paid version of ChatGPT Plus (GPT-4) makes it easier to complete financial analysis.

Building effective prompt words and providing specific financial metrics is essential to obtaining high-quality financial analysis results. Make good use of ChatGPT to make your financial analysis easier and more efficient.

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