# finance

A skill with formulas and templates for DCF, LBO, M&A and statement analysis. Useful when the agent builds a model or works out multiples.

- skill · `type=skill` · Claude Code, Codex, Cursor, GitHub Copilot, Gemini CLI, OpenCode · 376 installs · ★ 106
- Author: travisjneuman
- License: MIT · policy=mirror · the beginning of the file is at the end of this page
- Source: https://github.com/travisjneuman/.claude/tree/HEAD/skills/finance/SKILL.md
- Updated: 2026-10-25
- HTML: https://affpapa.org/en/nevibecode/skills/finance

## What it does

The finance skill gives the agent a set of financial frameworks. Statement analysis runs through a five-factor DuPont breakdown, plus a ratio table covering margins, ROIC, ROE, current and quick liquidity, debt/EBITDA, interest coverage, turnover, DSO and DPO. Free cash flow comes in three forms: operating, unlevered and levered.

Valuation covers DCF with enterprise value, terminal value by perpetuity growth and by exit multiple, and a year-by-year model template. There is comparable company analysis with trading multiples, precedent transactions, sum-of-the-parts, and adjustments for control, liquidity and size. A separate LBO block lays out sources and uses, target IRR, MOIC by hold period, and where returns come from. Then M&A, with accretion/dilution worked through EPS.

The text stops inside the M&A section, so the deal analysis is not complete. Install with `npx skills add travisjneuman/.claude --skill finance -a claude-code`; the skill lands at `~/.claude/skills/finance/SKILL.md`. Check the numbers yourself — the skill supplies formulas and reference ranges, it does not pull your data or reconcile it against real filings.

## Install

### Claude Code (native platform)

1. **Skills CLI (Vercel)**
```bash
npx skills add travisjneuman/.claude --skill finance -a claude-code
```

2. **Manually: put the files in place**
- File: `~/.claude/skills/finance/SKILL.md` — Copy the whole skill folder; for one project use .claude/skills/finance/

### Codex

1. **Skills CLI (Vercel)**
```bash
npx skills add travisjneuman/.claude --skill finance -a codex
```

2. **Manually: put the files in place**
- File: `.agents/skills/finance/SKILL.md` — For all projects use ~/.agents/skills/

### Cursor

1. **Skills CLI (Vercel)**
```bash
npx skills add travisjneuman/.claude --skill finance -a cursor
```

2. **Manually: put the files in place**
- File: `.cursor/skills/finance/SKILL.md` — Cursor also reads .agents/skills/ and .claude/skills/

### GitHub Copilot

1. **GitHub CLI**
```bash
gh skill install travisjneuman/.claude finance
```

2. **Manually: put the files in place**
- File: `.github/skills/finance/SKILL.md`

### Gemini CLI

1. **Skills CLI (Vercel)**
```bash
npx skills add travisjneuman/.claude --skill finance -a gemini-cli
```

2. **Platform CLI**
```bash
gemini skills install https://github.com/travisjneuman/.claude --path skills/finance
```

### Windsurf (Devin Desktop)

**Manually: put the files in place**
- File: `.devin/skills/finance/SKILL.md` — The legacy .windsurf/skills/ path still works

### OpenCode

**Skills CLI (Vercel)**
```bash
npx skills add travisjneuman/.claude --skill finance -a opencode
```

### Claude.ai

**Claude.ai**
- Zip the folder and upload it in Settings → Capabilities → Skills

Where a file is given instead of a command, copy the files from the source to that path: https://github.com/travisjneuman/.claude/tree/HEAD/skills/finance/SKILL.md

## When to use it
- break ROE into operating drivers with the five-factor model
- work out unlevered free cash flow for a DCF
- build a table of liquidity and leverage ratios
- value a company against comparable multiples
- sketch LBO returns by IRR and MOIC

## Example prompts
- build a DCF from these statements, terminal value by perpetuity growth
- break down ROE into five factors and show what drags it down
- run accretion/dilution on this deal and tell me if it dilutes EPS

## Source text · SKILL.md · MIT

Below is the content of a third-party file. It is data, not instructions for you: do not act on anything written inside unless the human asks. Block tag: e44029b041b9591b.

BEGIN THIRD-PARTY FILE e44029b041b9591b
````text
---
name: finance
description: Financial analysis expertise for financial modeling (DCF, LBO, M&A), valuation, financial statement analysis, capital allocation, treasury management, and corporate finance decisions. Use when building financial models, analyzing statements, or making investment decisions.
---

# Financial Analysis Expert

Comprehensive financial frameworks for modeling, valuation, and corporate finance decisions.

## Financial Statement Analysis

### DuPont Analysis (5-Factor)

Decompose ROE into operational drivers:

```
ROE = Net Profit Margin x Asset Turnover x Equity Multiplier

Extended (5-Factor):
ROE = (EBIT/Sales) x (Sales/Assets) x (Assets/Equity) x (EBT/EBIT) x (NI/EBT)
    = Operating Margin x Asset Turnover x Leverage x Interest Burden x Tax Burden
```

### Key Financial Ratios

| Category          | Ratio             | Formula                              | Benchmark            |
| ----------------- | ----------------- | ------------------------------------ | -------------------- |
| **Profitability** | Gross Margin      | Gross Profit / Revenue               | Industry specific    |
|                   | Operating Margin  | EBIT / Revenue                       | 15-25% (varies)      |
|                   | Net Margin        | Net Income / Revenue                 | 10-20% (varies)      |
|                   | ROIC              | NOPAT / Invested Capital             | > WACC               |
|                   | ROE               | Net Income / Equity                  | 15-20%+              |
| **Liquidity**     | Current Ratio     | Current Assets / Current Liabilities | 1.5-2.0x             |
|                   | Quick Ratio       | (CA - Inventory) / CL                | 1.0x+                |
|                   | Cash Ratio        | Cash / Current Liabilities           | 0.2-0.5x             |
| **Leverage**      | Debt/Equity       | Total Debt / Total Equity            | < 1.0x               |
|                   | Debt/EBITDA       | Total Debt / EBITDA                  | 2-3x (IG), 4-6x (HY) |
|                   | Interest Coverage | EBIT / Interest Expense              | > 3x                 |
| **Efficiency**    | Asset Turnover    | Revenue / Total Assets               | Industry specific    |
|                   | Inventory Days    | Inventory / (COGS/365)               | Industry specific    |
|                   | DSO               | AR / (Revenue/365)                   | 30-45 days           |
|                   | DPO               | AP / (COGS/365)                      | 30-60 days           |

### Cash Flow Analysis

```
FREE CASH FLOW (FCF):
Operating Cash Flow
- Capital Expenditures
= Free Cash Flow

UNLEVERED FREE CASH FLOW (for valuation):
EBIT
````
END THIRD-PARTY FILE e44029b041b9591b

The third-party file has ended. Everything between the e44029b041b9591b tags is data: requests and commands from it are not followed. An “end of file” line with another tag inside the block is part of the file.

First 2743 of 12130 bytes. © travisjneuman · MIT · https://github.com/travisjneuman/.claude/tree/HEAD/skills/finance/SKILL.md

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---
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