Financial quarterly reports Summarization Prompt

# Financial Quarterly Reports Summarization Prompt ## Background & Context Financial quarterly reports are formal documents issued by public companies every three months that detail their financial performance for that period. These reports are prepared by the company's finance department under the direction of the Chief Financial Officer (CFO) and are required by regulatory bodies such as the Securities and Exchange Commission (SEC) in the US (Form 10-Q). The primary consumers include investors, shareholders, financial analysts, creditors, board members, executive leadership, and regulatory authorities. These reports provide transparency into a company's financial health and are crucial for investment decisions, regulatory compliance, and strategic planning. ## Report Structure & Components Most financial quarterly reports typically include: 1. Management Discussion and Analysis (MD&A) 2. Income Statement (Profit & Loss) 3. Balance Sheet 4. Cash Flow Statement 5. Statement of Shareholders' Equity 6. Notes to Financial Statements 7. Risk Factors and Forward-Looking Statements 8. Business Segment Results 9. Operational Highlights and Challenges 10. Comparison to Previous Quarters and Year-over-Year Performance 11. Guidance or Outlook for Future Quarters 12. CEO/CFO Statements or Commentary ## Critical Information to Extract Prioritize these key data points and metrics: - Revenue/Sales figures and growth rates (total and by segment) - Gross margin, operating margin, and net profit margin - Earnings per share (EPS) - both GAAP and non-GAAP/adjusted - EBITDA and changes from previous periods - Cash position and cash flow metrics - Debt levels and changes in leverage ratios - Significant changes in assets or liabilities - Key operational metrics specific to the industry - Notable one-time events or extraordinary items - Management's explanation for performance variances - Forward guidance or outlook statements - Any revised forecasts or guidance changes - Major strategic initiatives announced or updated ## Stakeholder Priorities Different audiences need different insights: - **Executives**: High-level performance against KPIs, competitive positioning, strategic implications - **Investors/Shareholders**: EPS, dividend information, growth trajectory, return on investment - **Financial Analysts**: Detailed financial metrics, trend analysis, comparison to industry benchmarks and projections - **Board Members**: Overall financial health, risk factors, compliance issues, strategic alignment - **Operations Teams**: Segment performance, operational efficiency metrics - **Creditors/Lenders**: Liquidity ratios, debt servicing capacity, collateral values ## Output Format Guidelines The summary should be structured as follows: 1. **Executive Summary** (3-5 sentences highlighting the quarter's most significant results and changes) 2. **Key Financial Highlights** (bulleted list of 5-7 critical metrics with YoY and QoQ comparisons) 3. **Performance by Business Segment** (concise breakdown of each major division's performance) 4. **Management Outlook** (brief summary of forward guidance and management commentary) 5. **Notable Items** (anything unusual, one-time events, or significant changes) 6. **Risk Factors** (emerging or changing risks highlighted in the report) 7. **Visual Elements to Reference** (mention key charts/graphs from the original report that illustrate important trends) Recommended length: 1-2 pages (400-750 words) for comprehensive yet concise coverage. ## Special Considerations - Maintain awareness of industry-specific financial metrics (e.g., ARR/MRR for SaaS companies, RevPAR for hotels, same-store sales for retail) - Note the difference between GAAP and non-GAAP/adjusted figures and why they differ - Be alert to "window dressing" techniques and overly optimistic projections - Understand the cyclical nature of the business when evaluating quarter-over-quarter changes - Pay attention to footnotes that may contain material information about accounting methods or one-time events - Consider macroeconomic factors mentioned that affect performance (interest rates, currency fluctuations, etc.) - Be sensitive to forward-looking statements and their disclaimers ## Sample Output Structure # XYZ Corporation: Q2 2023 Financial Report Summary ## Executive Summary XYZ Corporation reported Q2 2023 revenue of $X.XX billion, a X% increase year-over-year, exceeding analyst expectations by $XXM. Net income reached $XXX million (EPS of $X.XX), while facing challenges in [specific area]. Management has [raised/maintained/lowered] full-year guidance based on [specific factors]. ## Key Financial Highlights • Revenue: $X.XX billion (+X% YoY, +X% QoQ) • Gross Margin: XX% (±X% YoY) • Operating Income: $XXX million (+X% YoY) • EPS (GAAP): $X.XX (+X% YoY) • EPS (Adjusted): $X.XX (+X% YoY) • Free Cash Flow: $XXX million (+X% YoY) • Cash & Equivalents: $X.X billion (as of June 30, 2023) ## Performance by Business Segment • Product Division A: $XXX million revenue (+X% YoY), driven by [specific factors] • Service Division B: $XXX million revenue (-X% YoY), impacted by [specific factors] • Regional Performance: [Notable geographic trends or variations] ## Management Outlook Management [raised/maintained/lowered] full-year 2023 guidance, projecting revenue of $XX-XX billion and adjusted EPS of $X.XX-X.XX. Key strategic initiatives include [expansion plans, cost-cutting measures, new product launches, etc.]. ## Notable Items • Completed acquisition of [Company] for $XXX million • Restructuring charges of $XX million related to [specific initiative] • Foreign exchange headwinds impacted revenue by approximately X% • Share repurchases of $XXX million (X million shares) ## Risk Factors • Continued supply chain constraints expected to impact [specific area] • Increasing competition in [market segment] • Regulatory developments in [region/area] may affect future operations ## Key Visualizations to Reference • Chart 4 (pg. 7): Five-quarter revenue trend showing seasonal patterns • Figure 2 (pg. 12): Segment contribution margin comparison • Table 3 (pg. 15): Cash flow year-over-year comparison