Balance Sheet Analysis Template
Financial Statements & Reporting
Quick Answer
Enter your balance sheet figures for current assets liabilities and equity. Paste into Claude or ChatGPT. Receive professional commentary on financial position and health ratios.
What You Get
Professional balance sheet commentary covering asset quality and composition, liability structure and debt levels, equity position and book value, key financial ratios including current ratio and debt to equity, and a financial health assessment.
Who Is This For
Business owners preparing for bank lending conversations, CFOs producing board financial packages, and founders explaining financial position to investors.
About This Template
The balance sheet is a snapshot of what your business owns, owes, and is worth at a point in time. While most business owners can read a balance sheet, few can write the professional commentary that explains what the numbers mean for business health, liquidity, and financial risk. This template takes your balance sheet figures and uses AI to produce professional commentary covering asset composition, liability structure, equity position, and the key ratios that lenders and investors use to assess financial health.
Fill In Your Details
Your company name
e.g. June 30 2026
e.g. 2400000
e.g. 380000
e.g. inventory prepaid expenses 120000
e.g. 450000
e.g. intangibles goodwill deposits 200000
e.g. 95000
e.g. 150000
e.g. 800000
e.g. 2505000
e.g. 2375000 to show equity movement
Gather these details then use them to fill in the prompt below.
AI Prompts
Generate balance sheet analysis
Paste this prompt into Claude or ChatGPT with your figures filled in.
You are a CFO preparing professional balance sheet commentary for management and board review. Using the financial data below, write a clear analysis of the balance sheet position. Company: [company_name] Date: [report_date] Cash: [cash] Accounts receivable: [accounts_receivable] Other current assets: [other_current_assets] Fixed assets: [fixed_assets] Other long-term assets: [other_long_term_assets] Accounts payable: [accounts_payable] Short-term debt and current liabilities: [short_term_debt] Long-term debt: [long_term_debt] Total equity: [total_equity] Prior period equity: [prior_period_equity] Write professional commentary covering: 1. Asset Composition — quality and composition of assets, cash position assessment 2. Liability Structure — debt levels, maturity profile, and coverage assessment 3. Equity Position — book value, equity movement from prior period, retained earnings 4. Key Ratios — calculate and interpret: current ratio, quick ratio, debt to equity, return on equity 5. Financial Health Assessment — overall balance sheet strength, any areas of concern 6. Lender and Investor Perspective — how a bank or investor would view this balance sheet Calculate all ratios from the numbers provided. Be specific about what each ratio indicates for this business.
Sample Output
This is an example of what AI produces when you use this template.
Asset Composition
Total assets of $3.55M are predominantly liquid, with cash representing 67.6 percent of total assets at $2.4M. This strong cash concentration reflects the recent fundraise and provides excellent near-term liquidity. Accounts receivable of $380,000 represents 44.7 percent of monthly revenue, implying approximately 13.4 DSO — well within acceptable range and indicating efficient collections. Fixed assets are modest at $450,000 consistent with a software business model that requires limited physical infrastructure.
Key Ratios
Current ratio: 10.2x (current assets $2.9M divided by current liabilities $245K) — extremely strong liquidity well above the 2.0x threshold lenders typically require. Debt to equity: 0.38x ($950K total debt divided by $2.505M equity) — conservative leverage with significant headroom for additional debt financing if needed. Return on equity: 5.2 percent annualized — modest at this stage, reflecting the investment phase of the business where profitability is being reinvested in growth.