Financial Analysis Prompt Templates — Investment Banking 12-Template Framework

Collected set of 12 investment banking and financial analysis prompt templates shared on X. This document summarizes each briefly and identifies which are relevant for Ray Data Co’s operating model vs. investment banking workflows.

Overview: All 12 Templates

Relevant for RDCO Operations (4 templates)

1. #2 Three-Statement Model — Links income statement, balance sheet, and cash flow statement to model complete financial dynamics
2. #10 Operating Model & Unit Economics — Builds metrics around revenue per customer, payroll, burn rate, runway, breakeven, and operating leverage
3. #11 Sensitivity & Scenario Analysis — Models outcomes under different business scenarios (base, upside, downside) with key variable pivots
4. #8 Credit/Debt Capacity — Assesses debt servicing ability and borrowing headroom based on cash flow and profitability

Investment Banking Reference Only (8 templates)

• #1 DCF (Discounted Cash Flow) — Valuation framework: project future cash flows, discount to present value. Not for small ops.
• #3 M&A (Mergers & Acquisitions) — Deal structuring, target valuation, post-merger synergies. Not for standalone LLC.
• #4 LBO (Leveraged Buyout) — Acquisition financed with debt where acquired company’s cash flow services debt. Not applicable.
• #5 Comps (Comparable Companies) — Valuation by benchmarking against publicly traded peer multiples. No public peers for consulting.
• #6 Precedent Transactions — Valuation by historical M&A transaction prices in the sector. Not relevant.
• #7 IPO (Initial Public Offering) — Prepare private company for public equity markets. Not a near-term goal.
• #9 SOTP (Sum-of-the-Parts) — Disaggregates multi-division company into separate valuations. RDCO is unitary.
• #12 Investment Committee Memo — Executive-grade memo for investor decision-making. RDCO has no external investors.

Relevant for Ray Data Co

#2 Three-Statement Model — Integrated Financial Statements

One-liner: Link income statement (P&L), balance sheet (assets, liabilities, equity), and cash flow statement (operating, investing, financing activities) to model how operations, investments, and distributions affect the company.

Adaptation for RDCO:

• Inputs: Historical P&L from 2023–2025 (revenue, payroll, OPEX, meals, professional services). Use Collective.com monthly reports.
• Model structure:
  • P&L projection: Revenue assumptions by client (Mammoth, phData transition, new consulting bets); payroll scaling; OPEX (office, meals, software subscriptions).
  • Balance sheet: Asset position (Mercury checking accounts, furniture/equipment); liability tracking (AMEX Business Card float, any accrued expenses); equity (retained earnings, shareholder distributions).
  • Cash flow: Operating cash (revenue, payroll, OPEX timing); investing (equipment, software upgrades); financing (owner distributions vs. reinvestment).
• Key variables: Monthly revenue volatility (seen in GLs: $0 in Feb, Jun, Nov; $31K+ in May, Oct), payroll timing (10th and 25th distributions per Profit First), AMEX payment cycles.
• Use case: Model FY2026 guidance; test scenarios like phData exit (lump-sum payday) vs. Mammoth contract extension; track cash runway under different client mixes.

#10 Operating Model & Unit Economics — Revenue & Cost Drivers

One-liner: Define revenue generation mechanics (revenue per customer, engagement hours, contract terms), fixed vs. variable costs, and metrics (burn rate, runway, gross margin, breakeven point).

Adaptation for RDCO:

• Revenue model:
  • Mammoth Growth: recurring monthly retainer (~$10–15K/month based on 2025 GL patterns). Client type: growth company, stable contract.
  • phData opportunity: lump-sum acquisition/advisory (estimated ~$250K–500K if acquisition path chosen). Client type: potential acquisition target.
  • Ad-hoc consulting: project-based, variable ($0–$20K/month observed). Client type: referral, one-off engagements.
  • Newsletter/content monetization: emerging, low current contribution.
• Cost drivers:
  • Payroll: Officer salary $57.5K annual (2025); scale if hiring. Fixed cost.
  • OPEX: Office/software (~$14K annual), meals ($9K annual), legal/professional ($3K). Mostly fixed; meals scale with business development activity.
  • Meals: 50% deductible, ~$9.2K in 2025 suggests 1–2 client meals/week. Variable cost tied to BD.
• Key metrics:
  • Gross margin: 50.5% (2025 net margin). Excellent for consulting.
  • Payroll % of revenue: 28.9% (officer payroll / total revenue in 2025). Very healthy.
  • Breakeven point: ~$113K annual revenue (payroll + OPEX). Currently above breakeven; sustainable.
  • Runway: At current $57K cash + $101K annual net income, company could sustain indefinitely without clients (profit covers payroll).
  • Revenue per dollar of payroll: $3.46 (revenue / payroll). Healthy leverage; scaling projects doesn’t require proportional payroll increase.
• Use case: Model client concentration risk (Mammoth is ~60% of revenue in peak months). Evaluate hiring: if adding 1 FTE at $50K payroll, need $50K+ incremental revenue to maintain margins. Sensitivity: breakeven with 0 revenue is only payroll ($57.5K) — true cash basis.

#11 Sensitivity & Scenario Analysis — Multi-Scenario Modeling

One-liner: Project financial outcomes across three scenarios (base case, upside, downside) by varying key assumptions (client retention, contract value, payroll changes, phData outcome).

Adaptation for RDCO:

• Three scenarios for 2026:
  • Base case: Mammoth contract continues at current $10K/month; no major new clients; phData remains consulting engagement (~$1K/month); officer payroll holds steady at $57.5K. Revenue forecast: ~$180K (flat-ish, reflecting historical lumpiness). Net income ~$80K.
  • Upside: Mammoth expands to $15K/month (new workstream); phData acquisition path chosen ($300K lump sum mid-year); 1 new consulting client ($3K/month steady). Revenue forecast: ~$450K. Net income ~$330K (offset by acquisition advisory time).
  • Downside: Mammoth loses contract by Q2 (loses $10K/month = $120K annual); phData deal falls apart (lose $1K/month). Relies on ad-hoc consulting. Revenue forecast: ~$50K. Business is cash-flow negative ($57.5K payroll > $50K revenue). Runway: 12 months on current balance sheet.
• Key variables to test:
  • Revenue: +/- 20% from base case.
  • Payroll: Officer salary (hold vs. bonus), hiring new consultant ($50K+ cost).
  • OPEX: Office/meals (tied to business development intensity).
  • Client concentration: Model 1, 2, 3 concurrent clients; calculate concentration risk.
• Use case: Evaluate phData decision (upside is $300K gross, but downside risk is losing consulting relationship if acquisition path pursued). Plan hiring threshold: only add FTE if base case revenue sustainable + upside contract visible. Model working capital: when lump-sum revenue arrives (phData acquisition), when to distribute vs. reinvest.

#8 Credit/Debt Capacity — Borrowing & Debt Service

One-liner: Assess how much debt the company can service from operating cash flow, and whether debt is beneficial given current capital structure.

Adaptation for RDCO:

• Current balance sheet (Dec 2025):
  • Assets: $57.8K (mostly liquid in Mercury accounts).
  • Liabilities: $2.1K (AMEX Business Card only; no term debt).
  • Equity: $55.6K (majority retained earnings).
  • Leverage ratio: $2.1K / $57.8K = 3.6% debt-to-assets. Very low leverage.
• Debt servicing capacity:
  • Annual net income (2025): ~$101K.
  • If SBA Made in America Loan target is $200K (for growth capital, equipment, or cash reserves):
    • Debt service (assuming 7-year term, 4% rate): ~$33K annual.
    • DSCR (Debt Service Coverage Ratio) = $101K / $33K = 3.06x. Excellent.
    • Payback period: 2 years.
  • Company can comfortably service $200K+ in debt.
• Relevant borrowing scenarios:
  • Growth capital: $100K to fund phData transition (legal, advisory, integration costs) + working capital for 6-month revenue gap. Payback from phData acquisition proceeds or enlarged consulting fees.
  • Equipment/software upgrade: $25K for office setup, AI infrastructure, analytics tooling. Payback from revenue productivity gains.
  • Contingency reserve: $50K draw (unused) for cash-flow smoothing if Mammoth contract lapses unexpectedly.
• SBA Made in America Loan fit:
  • Loan size: $150–250K.
  • Use of proceeds: Working capital, equipment, business development, potential phData advisory.
  • Underwriting requirements: Personal guarantee (Ray), tax returns (2023, 2024, 2025 available), business plan (phData transition).
  • DSCR hurdle: Most SBA lenders want 1.25x minimum; RDCO at 3.06x is well above.
  • Timeline: Application, underwriting, funding typically 6–8 weeks. Useful if phData advisory requires upfront cash or to front-run Mammoth contract loss.
• Use case: Model debt vs. equity. Borrowing at 4% when ROIC is ~175% (net income / equity = $101K / $57.8K) makes financial sense. But borrowing for contingency is conservative; prefer to borrow opportunistically when deploying capital (e.g., phData transition).

Not Relevant for Ray Data Co

Investment Banking Templates (Reference Only)

These tools are designed for evaluating whether to acquire, invest in, or take public large companies. RDCO is a small, profitable, operating LLC with no plans for M&A, external investment, or IPO.

• #1 DCF Valuation — Typical use: value a $10M+ target company for acquisition. RDCO’s valuation is: book value ($55.8K) + some multiple of earnings ($101K * 2–3x = $200–300K). Simple multiple works fine; full DCF overkill.
• #3 M&A Deal Analysis — Typical use: structure acquisition (purchase price, terms, earnouts, synergies). Useful only if RDCO is acquiring another firm or being acquired. Not current priority.
• #4 LBO (Leveraged Buyout) — Typical use: buy a company with debt, pay debt from cash flow. RDCO is already operated by founder; no leveraged buyout scenario.
• #5 Comparable Companies — Typical use: find 5–10 public companies in same industry, apply their multiples to target valuation. No public consulting companies trading on these metrics.
• #6 Precedent Transactions — Typical use: find 5–10 historical M&A deals in industry, infer target valuation. Limited dataset for small boutique consulting acquisitions.
• #7 IPO Analysis — Typical use: prep 500+ person company for public markets. RDCO is 1–2 people. Not applicable for 10+ years.
• #9 Sum-of-the-Parts (SOTP) — Typical use: large conglomerate (Berkshire Hathaway model) with distinct divisions. RDCO is a single P&L; no SOTP needed.
• #12 Investment Committee Memo — Typical use: board presents deal recommendation to IC (investors, partners). RDCO has no external IC; founder makes decisions autonomously.

Actionable: Proposed /financial-model Skill

Scope

Build a reusable, customizable financial modeling skill that adapts templates #2 (Three-Statement), #10 (Operating Model), and #11 (Sensitivity/Scenario) for Ray Data Co’s specific data and assumptions.

Inputs

• Historical financials (from vault: 01-projects/financials/):
  • 2025 annual P&L, GL, balance sheet.
  • Monthly detail from Collective.com reports (revenue timing, payroll cycles, OPEX patterns).
• Client assumptions (to be defined):
  • Mammoth contract: base estimate ($10K/month), upside ($15K/month), downside (lost).
  • phData opportunity: base (none), upside ($300K), downside (none).
  • Ad-hoc consulting: assumed $3–5K/month variance.
• Payroll scenarios:
  • Officer salary (base: $57.5K, with/without bonus).
  • Hire consultant (cost + ramp time).
• OPEX assumptions:
  • Office/software: ~$1.2K/month (fixed).
  • Meals: $750–900/month (variable with BD intensity).
  • Professional services: $250/month (legal, accounting, advisory).

Outputs

1. Three-Statement Model (12-month forecast + full-year):

   • Projected P&L (revenue, payroll, OPEX, net income) by month.
   • Projected balance sheet (cash, equipment, equity, retained earnings) quarterly.
   • Projected cash flow (operating, investing, financing) by month.
   • Pivot table: key monthly metrics (margin %, cash balance, payroll % of revenue).

2. Operating Model Dashboard:

   • Revenue composition: Mammoth %, phData %, ad-hoc %.
   • Unit economics: revenue per payroll dollar, revenue per OPEX dollar, gross margin.
   • Efficiency metrics: payroll days (days of payroll covered by current cash).
   • Breakeven analysis: minimum monthly revenue to cover payroll, OPEX, minimal profit.

3. Scenario Analysis (Base / Upside / Downside):

   • Three side-by-side P&L forecasts (12-month and FY totals).
   • Variance table: upside/downside vs. base (revenue, EBITDA, net income, cash position).
   • Sensitivity matrix: 2D table showing net income as client revenue and OPEX vary.
   • Probability-weighted forecast (assign % confidence to each scenario, compute expected value).

Integration

• Skill reads from /01-projects/financials/ and /01-projects/phdata/ (for phData assumptions).
• Output: standalone HTML dashboard or CSV export ready for sharing with advisors (accountant, lender, potential co-founder).
• Update frequency: monthly, after Collective.com reports arrive.

Why This Matters

• Clarity: Consolidates scattered GL data into one forward-looking view.
• Decision-making: Scenarios show upside of phData transition vs. downside of Mammoth loss. Enables confident Go/No-Go calls.
• Lending: SBA lender wants to see 3-year projections; dashboard feeds into credit underwriting.
• Hiring: Shows payroll capacity for next FTE; validates whether adding headcount is sustainable.

Cross-References

• 01-projects/financials/financial-overview — Historical financials, account structure, 2025 results.
• 06-reference/2026-04-03-profit-first — Operating principles for allocating revenue (Profit, Owner Comp, Tax, OPEX accounts).
• 01-projects/phdata/offer-negotiation-framework — phData exit scenarios and deal structure.
• 05-decisions/index — Strategic decisions on phData acquisition path, consulting focus, hiring plans.

Notes for Ray

These 12 templates are a framework. The discipline is not in mastering all 12 (only 4 apply to you), but in:

1. Understanding your unit economics cold. You need to know: How much does a new client cost to acquire? How long does the engagement last? What’s the gross margin per engagement? You have 2 years of data; build this model from truth.

2. Modeling downside. The phData decision is material. If you take equity, you lose consulting upside (opportunity cost). If you stay consulting, you forgo a potential 3–10x return. Model both, assign probability, make the call. A scenario model forces clear thinking.

3. Keeping it simple. You don’t need a 50-tab Excel model. Start with three sheets: P&L, balance sheet, cash flow. Plug in actuals from Collective.com. Build assumptions on a separate “Inputs” sheet. Add scenarios by copying the model three times. Done.

4. Updating regularly. Financial models are only useful if they’re maintained. After each month’s Collective report, update actuals and re-forecast the year. Run sensitivity tables quarterly. Use the outputs to guide hiring, pricing, and business development decisions.

The /financial-model skill should handle the mechanical work (data extraction, formula linking, scenario generation). Your job is to feed it accurate assumptions and interpret the output. That’s where the signal is.

Tags: financial-analysis, operating-model, phdata-decision, sba-lending, scenario-planning