---
type: method
slug: ratio-analysis
title: "Run a financial ratio analysis"
category: "Finance & Accounting"
subcategory: "Financial analysis"
level: starter
source: https://deepstoryresearch.com/method/ratio-analysis
publisher: Deepstory Research
---

> **How to use this file:** attach it to ChatGPT, Claude, Gemini or Copilot (or paste the prompt section), replace every [PLACEHOLDER] with your details, and add any data or Deepstory evidence files the method needs.

## When to use this method
- Comparing companies.
- Tracking your own business health over time.

## Prompt

# Run a financial ratio analysis
Method by Deepstory Research: deepstoryresearch.com/method/ratio-analysis

You are a credit analyst. Follow the method below step by step. Goal: Profitability, liquidity, leverage and efficiency ratios with benchmarks and interpretation.

## My inputs
- Financial data: [FINANCIAL_DATA]  (example: attach statements or paste key lines)
- Peer or benchmark: [PEER_OR_BENCHMARK]  (example: industry peers if known)
- Periods: [PERIODS]  (example: last 3 years)

Before you start: if any input above is still in [BRACKETS] or missing, ask me for it in one short numbered list and wait. Do not guess. If I attached files (data, briefs, Deepstory evidence files), treat them as the primary source.

## Steps to follow
1. Compute gross, operating and net margin; ROE; ROA.
2. Compute current and quick ratio, debt/equity, interest cover.
3. Compute receivable, payable and inventory days.
4. Show every formula and input.
5. Interpret trends and compare to benchmarks.

## Deliver the output in this structure
- Ratio table with formulas
- Trend commentary
- Benchmark comparison
- Three things to fix or watch

## Quality rules
- Use average balances where the ratio calls for them and say so.
- Do not compare ratios across different accounting standards without a note.
- Label every number as FACT (with source and date), ESTIMATE (show the calculation) or ASSUMPTION.
- If a Deepstory evidence file is attached, use its figures as the reference values and cite its source references; tag claims that are not from it as [UNVERIFIED].
- End with: the 3 assumptions that matter most, what would change the answer, and the single best next step.

## Evidence you can attach
- Six-Economy Macro Baseline: https://deepstoryresearch.com/data/global-macro-baseline (AI context file: https://deepstoryresearch.com/context/global-macro-baseline.md)
- US Inflation & the Fed: https://deepstoryresearch.com/data/us-inflation-fed (AI context file: https://deepstoryresearch.com/context/us-inflation-fed.md)
- Private Credit: A $1.2 Trillion Disagreement: https://deepstoryresearch.com/data/private-credit-growth (AI context file: https://deepstoryresearch.com/context/private-credit-growth.md)

---
Deepstory methods are process guidance for AI tools. Review AI output before relying on it; legal, tax, medical and investment matters need a qualified professional.