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Initiating Coverage

AnthropicOfficialPublished by Anthropic

  • Skill
  • Workflow
  • Business and productivity
  • Apache-2.0
  • Low risk

From the author

Create institutional-quality equity research initiation reports through a 5-task workflow. Tasks must be executed individually with verified prerequisites - (1) company research, (2) financial modeling, (3) valuation analysis, (4) chart generation, (5) final report assembly. Each task produces specific deliverables (markdown docs, Excel models, charts, or DOCX reports). Tasks 3-5 have dependencies on earlier tasks.
— the description by Anthropic

AutoGineer summary

Written by AutoGineer from the skill’s own files, not by the author

This skill provides a systematic, multi-task process for generating equity research initiation reports. It enforces a strict, single-task execution model to ensure each component of the report—company research, financial modeling, valuation analysis, chart generation, and final assembly—is completed with verified inputs before moving to the next stage. The workflow is designed to produce professional-grade documentation, including detailed financial models, valuation analysis, and visual charts, following institutional standards.

What it does

  • Conducts qualitative company research including management bios and competitive analysis.
  • Builds comprehensive Excel financial models with 6 essential tabs.
  • Performs valuation analysis using DCF, comparables, and precedent transactions.
  • Generates 25-35 professional financial charts for visual data representation.
  • Assembles all components into a final, text-dense DOCX research report.

When to use it

  • When you need to produce a comprehensive equity research initiation report.
  • When you require a structured, step-by-step approach to financial analysis.
  • When you need to maintain strict quality control across multiple research tasks.
  • When you are preparing institutional-standard financial documentation.

Advantages

  • Enforces a logical, dependency-aware task order.
  • Ensures data integrity by verifying prerequisites before each task.
  • Produces standardized, professional-grade financial outputs.
  • Provides clear, granular control over the research and assembly process.

Usage examples

“Use initiating-coverage, Task 1 for Tesla”
The agent initiates the company research task for Tesla, producing a detailed research document.
“Do Task 2 of initiating-coverage for Tesla”
The agent begins the financial modeling task, requiring access to financial statements or pre-extracted data.
“Run Task 3 for Tesla using the initiating-coverage skill”
The agent performs valuation analysis, provided that the financial model from Task 2 is already complete.
“I want to complete all 5 tasks for Tesla”
The agent explains the one-task-at-a-time requirement and asks to start with Task 1.

Install

  1. Download the skill as a ZIP:

    https://autogineer.com/agent-skills/anthropics/initiating-coverage/download
  2. Unzip it into the cross-client skills folder of your project:

    mkdir -p .agents/skills && unzip initiating-coverage.zip -d .agents/skills

Documentation by Anthropic

Initiating Coverage

Create institutional-quality equity research initiation reports through a structured 5-task workflow. Each task must be executed separately with verified inputs.

Overview

This skill produces comprehensive first-time coverage reports following institutional standards (JPMorgan, Goldman Sachs, Morgan Stanley format). Tasks are executed individually, each verifying prerequisites before proceeding.

Default Font: Times New Roman throughout all documents (unless user specifies otherwise).


⚠️ CRITICAL: One Task at a Time

THIS SKILL OPERATES IN SINGLE-TASK MODE ONLY.

If User Requests Full Pipeline

When user requests:

  • "Create a coverage initiation report for [Company]"

  • "Write an initiation report for [Company]"

  • "Do the entire equity research process for [Company]"

  • "Complete all 5 tasks for [Company]"

  • Any request that implies running multiple tasks or the entire workflow

REQUIRED RESPONSE:

  1. Ask which specific task to perform:

    I can help you create an equity research initiation report for [Company].
    This involves 5 separate tasks that need to be completed individually:
    
    1. Company Research - Research business, management, industry
    2. Financial Modeling - Build projection model
    3. Valuation Analysis - DCF and comparable companies
    4. Chart Generation - Create 25-35 charts
    5. Report Assembly - Compile final report
    
    Which task would you like to start with?
  2. When user explicitly requests all tasks together:

    I understand you'd like to complete the entire initiation report pipeline.
    Currently, this skill supports executing one task at a time, which allows
    for better quality control and review at each stage.
    
    We're working on a seamless end-to-end workflow that will make this process
    more automated, but for now, we'll need to complete each task separately.
    
    Would you like to start with Task 1 (Company Research)?
  3. Never automatically assume which task to start - always ask user to confirm.

  4. Never execute multiple tasks in sequence - complete one task, deliver outputs, then wait for next user request.

Task Execution Rules
  • ✅ Execute exactly ONE task per user request

  • ✅ Always verify prerequisites before starting a task

  • ✅ Deliver task outputs and confirm completion

  • ✅ Wait for user to explicitly request the next task

  • ❌ Never chain multiple tasks together automatically

  • ❌ Never assume user wants to proceed to next task

  • ❌ Never execute Tasks 3-5 without verifying required inputs exist

⚠️ Deliverables Policy: NO SHORTCUTS

DELIVER ONLY THE SPECIFIED OUTPUTS. DO NOT CREATE EXTRA DOCUMENTS.

Each task specifies exact deliverables. Do NOT create:

  • ❌ "Completion summaries"

  • ❌ "Executive summaries"

  • ❌ "Quick reference guides"

  • ❌ "Next steps documents"

  • ❌ "Task completion reports"

  • ❌ Any other "helpful" documentation not explicitly specified

Why: These extras waste context and are not part of the professional workflow.

What TO deliver:

  • ✅ Task 1: Research document (.md) — NOTHING ELSE

  • ✅ Task 2: Financial model (.xlsx) — NOTHING ELSE

  • ✅ Task 3: Valuation analysis (.md) + Excel tabs added to Task 2 file — NOTHING ELSE

  • ✅ Task 4: Charts zip file (.zip) — NOTHING ELSE

  • ✅ Task 5: Final report (.docx) — NOTHING ELSE

If a deliverable is not listed above, DO NOT CREATE IT.


Task Selection

Select which task to execute:

TaskNamePrerequisitesOutput
1Company ResearchCompany name/ticker6-8K word document
2Financial Modeling10-K or financials accessExcel model (6 tabs)
3Valuation AnalysisFinancial model (Task 2)Valuation + price target
4Chart GenerationTasks 1, 2, 3 + external data25-35 PNG/JPG charts
5Report AssemblyALL previous tasks (1-4)30-50 page DOCX report

How to Use This Skill

User Request Patterns and Responses

Pattern 1: User specifies a specific task

User: "Use initiating-coverage, Task 1 for Tesla"
Response: ✅ Execute Task 1 immediately

Pattern 2: User asks for "initiation report" or "full pipeline"

User: "Create a coverage initiation report for Tesla"
Response: ❌ DO NOT start any task automatically
         ✅ Ask which task to start with (see template above)

Pattern 3: User wants to do "all tasks" or "entire workflow"

User: "I want to complete all 5 tasks for Tesla"
Response: ❌ DO NOT chain tasks together
         ✅ Explain one-at-a-time limitation (see template above)
         ✅ Ask if they want to start with Task 1
Correct Usage Examples

Executing a single task:

"Use initiating-coverage skill, Task 1 for Tesla"
"Do Task 2 of initiating-coverage for Tesla"
"Run Task 3 for Tesla using the initiating-coverage skill"

Completing full report (requires 5 separate requests):

Request 1: "Do Task 1 for Tesla" → Complete → Deliver outputs
Request 2: "Do Task 2 for Tesla" → Complete → Deliver outputs
Request 3: "Do Task 3 for Tesla" → Complete → Deliver outputs
Request 4: "Do Task 4 for Tesla" → Complete → Deliver outputs
Request 5: "Do Task 5 for Tesla" → Complete → Deliver outputs
Task Execution Order

For a complete initiation report, tasks must be executed in separate user requests following this order:

Request 1: Task 1 - Company Research (independent)
           ↓ [User reviews outputs and requests next task]
Request 2: Task 2 - Financial Modeling (independent)
           ↓ [User reviews outputs and requests next task]
Request 3: Task 3 - Valuation Analysis (requires Task 2 output)
           ↓ [User reviews outputs and requests next task]
Request 4: Task 4 - Chart Generation (requires Tasks 2 & 3 outputs)
           ↓ [User reviews outputs and requests next task]
Request 5: Task 5 - Report Assembly (requires ALL previous task outputs)

Note: Tasks 1 and 2 can be run in any order. Tasks 3-5 have strict dependencies and must verify inputs before proceeding.


Task 1: Company Research

Purpose: Research company's business, management, competitive position, industry, and risks.

Prerequisites: ✅ None (fully independent)

  • Company name or ticker symbol

Process:

  1. Verify company name/ticker provided

  2. Load detailed instructions from references/task1-company-research.md

  3. Execute qualitative research workflow

  4. Deliver research document

Output: Company Research Document (6,000-8,000 words)

  • Company overview & history

  • Management bios (300-400 words × 3-4 execs)

  • Products & services analysis

  • Industry overview

  • Competitive analysis (5-10 competitors)

  • TAM sizing

  • Risk assessment (8-12 risks)

File name: [Company]_Research_Document_[Date].md

⚠️ DELIVER ONLY THIS 1 FILE. NO completion summaries, no extra documents.

⚠️ DO NOT TAKE SHORTCUTS:

  • ✅ Write full 6,000-8,000 words (not summaries)

  • ✅ Complete 300-400 word bios for ALL 3-4 executives

  • ✅ Analyze ALL 5-10 competitors thoroughly

  • ✅ Cover all 8-12 risks across 4 categories

  • ❌ Do not abbreviate sections to save time

  • ❌ Do not skip any required sections

Verification before proceeding: None required for this task.


Task 2: Financial Modeling

Purpose: Extract historical financials and build comprehensive Excel financial model with projections and scenarios.

Prerequisites: ⚠️ Verify before starting

  • Required: Access to company financial data

    • For public companies: Latest 10-K from SEC EDGAR

    • For private companies: Financial statements or available estimates

    • OR: Pre-extracted historical financials provided by user

  • Optional: Company research (Task 1) for business context

Input Verification:

BEFORE STARTING - Select approach:

Option A: Extract financials (most common)
- [ ] Have access to 10-K or financial statements?
- [ ] Ready to extract 3-5 years of data?

Option B: User provided pre-extracted financials
- [ ] Historical financials file received?
- [ ] Contains income statement, cash flow, balance sheet (3-5 years)?

Optional:
- [ ] Company research (Task 1) complete for context?

Process:

  1. Verify access to financial data

  2. Load detailed instructions from references/task2-financial-modeling.md

  3. Step 1: Extract historical financials (if needed)

  4. Step 2+: Build projection model with 6 essential tabs

  5. Deliver Excel model

Output: Excel Financial Model (.xlsx)

  • 6 essential tabs:

    1. Revenue Model - Product breakdown (20-30 rows) + Geography breakdown (15-20 rows)

    2. Income Statement - Full P&L with 40-50 line items, historical (3-5 years) + projected (5 years)

    3. Cash Flow Statement - Operating/Investing/Financing activities, historical + projected

    4. Balance Sheet - Assets/Liabilities/Equity, historical + projected

    5. Scenarios - Bull/Base/Bear comparison table

    6. DCF Inputs - Prepared for Task 3 valuation

File name: [Company]_Financial_Model_[Date].xlsx

⚠️ DELIVER ONLY THIS 1 FILE. NO completion summaries, no extra documents.

⚠️ DO NOT TAKE SHORTCUTS:

  • ✅ If extracting financials: Extract ALL line items from 3 financial statements (3-5 years)

  • ✅ Build ALL 6 projection tabs completely with full detail

  • ✅ Create detailed revenue model with 20-30 product rows AND 15-20 geography rows

  • ✅ Build complete income statement with 40-50 line items (not abbreviated)

  • ✅ Include full cash flow statement and balance sheet with all line items

  • ✅ Complete ALL three scenarios (Bull/Base/Bear) with different parameters

  • ❌ Do not create simplified/abbreviated versions

  • ❌ Do not skip any of the 6 essential tabs

  • ❌ Do not skip historical financials extraction if needed

Verification before proceeding to Task 3:

  • [ ] Historical financials extracted (if needed) or provided

  • [ ] Excel file created and can be opened

  • [ ] Model has all 6 essential tabs (Revenue Model, Income Statement, Cash Flow, Balance Sheet, Scenarios, DCF Inputs)

  • [ ] Historical data (3-5 years) incorporated

  • [ ] Projections complete (5 years forward)

  • [ ] Scenarios complete (Bull/Base/Bear)


Task 3: Valuation Analysis

Purpose: Perform comprehensive valuation using DCF, comparables, and precedent transactions.

Prerequisites: ⚠️ Verify before starting

  • Required: Financial model from Task 2

    • Projected income statements

    • Projected cash flows

    • Revenue and EBITDA forecasts

    • DCF inputs (unlevered FCF)

⚠️ CRITICAL: DO NOT START THIS TASK UNLESS TASK 2 IS COMPLETE

This task requires the financial model from Task 2. Starting without it will result in incomplete work.

IF TASK 2 IS NOT COMPLETE: Stop immediately and inform the user that Task 2 (Financial Modeling) must be completed first. Do not attempt to proceed or create placeholder valuations.

Input Verification:

BEFORE STARTING:
- [ ] Task 2 complete? (Financial model exists)
- [ ] Model file path/location known?
- [ ] Can access projected financials from model?

Required from model:
- [ ] Projected FCF (5 years)
- [ ] Revenue projections
- [ ] EBITDA projections
- [ ] Terminal year metrics

Process:

  1. Verify financial model is accessible

  2. Load detailed instructions from references/task3-valuation.md

  3. Execute valuation workflow

  4. Deliver valuation analysis

Output: Valuation Analysis (4-6 pages + Excel tabs)

  • DCF analysis with sensitivity tables

  • Comparable companies (5-10 peers with statistical summary)

  • Precedent transactions (if applicable)

  • Valuation football field

  • Price target: $XX.XX

  • Recommendation: BUY/HOLD/SELL

  • Upside: XX%

  • Key catalysts (3-5)

Files:

  • [Company]_Valuation_Analysis_[Date].md (written analysis document)

  • Excel tabs added to [Company]_Financial_Model_[Date].xlsx (from Task 2)

    • DCF tab with calculations

    • Sensitivity analysis tab

    • Comparable companies tab

    • Valuation summary tab

⚠️ DELIVER ONLY: 1 markdown file + 4 tabs added to existing Excel. NO completion summaries, no extra documents.

⚠️ DO NOT TAKE SHORTCUTS:

  • ✅ Complete full DCF analysis with sensitivity matrix (not simplified)

  • ✅ Analyze ALL 5-10 comparable companies with full data

  • ✅ Include statistical summary in comps table (max/75th/median/25th/min)

  • ✅ Create complete sensitivity analysis tab with multiple WACC and terminal growth scenarios

  • ✅ Write full 4-6 pages of valuation analysis (not abbreviated)

  • ✅ Research and justify price target with specific methodology

  • ❌ Do not skip comparable company analysis

  • ❌ Do not create simplified DCF without sensitivity

Verification before proceeding to Task 4:

  • [ ] Price target determined

  • [ ] Valuation uses multiple methods (DCF + Comps minimum)

  • [ ] DCF sensitivity table complete

  • [ ] Comparable companies table includes statistical summary


Task 4: Chart Generation

Purpose: Generate 25-35 professional financial charts for the report.

Prerequisites: ⚠️ Verify before starting

  • Required: Company research from Task 1

    • Company history and milestones (for timeline charts)

    • Management team and org structure (for org charts)

    • Product portfolio (for product charts)

    • Customer segmentation (for customer charts)

    • Competitive landscape (for competitive charts)

    • TAM analysis (for market size charts)

  • Required: Financial model from Task 2 (with Task 3 valuation tabs added)

    • Revenue by product/geography data (Task 2 tabs)

    • Margin trends (Task 2 tabs)

    • Scenario comparison data (Task 2 tabs)

    • DCF sensitivity table (Task 3 tab in same Excel file)

    • Comparable companies data (Task 3 tab in same Excel file)

    • Valuation ranges (Task 3 tab in same Excel file)

  • Required: External market data

    • Historical stock price data (Yahoo Finance, Bloomberg, etc.)

    • Historical valuation multiples (for historical trend charts)

⚠️ CRITICAL: DO NOT START THIS TASK UNLESS TASKS 1, 2, AND 3 ARE COMPLETE

This task requires outputs from all three previous tasks. Starting without them will result in incomplete charts.

IF ANY OF TASKS 1, 2, OR 3 ARE NOT COMPLETE: Stop immediately and inform the user which tasks need to be completed first. The specific requirements are:

  • Task 1: Company research document (for 9 charts)

  • Task 2: Financial model with all 6 tabs (for 8 charts)

  • Task 3: Valuation tabs added to the model (for 6 charts)

  • External data access (for 2 charts)

Do not attempt to create placeholder charts or skip charts due to missing data.

Input Verification:

BEFORE STARTING:
- [ ] Task 1 complete? (Company research exists)
- [ ] Task 2 complete? (Financial model exists)
- [ ] Task 3 complete? (Valuation analysis exists)
- [ ] Can access external market data sources?

Required from Task 1:
- [ ] Company history and milestones (for charts 05, 06)
- [ ] Management team structure (for chart 07)
- [ ] Product portfolio details (for chart 08)
- [ ] Customer segmentation data (for chart 09)
- [ ] Competitive landscape analysis (for charts 16, 17, 18)
- [ ] TAM sizing and market data (for chart 15)

Required from Task 2:
- [ ] Revenue by product (historical + projected) - for chart 03 ⭐
- [ ] Revenue by geography (historical + projected) - for chart 04 ⭐
- [ ] Income statement with margins (for charts 02, 10, 11)
- [ ] Cash flow statement (for chart 12)
- [ ] Scenario comparison data (for chart 14)

Required from Task 3:
- [ ] DCF sensitivity matrix - for chart 28 ⭐
- [ ] DCF components (for chart 29)
- [ ] Comparable companies data (for charts 30, 31)
- [ ] Valuation ranges - for chart 32 ⭐

Required from External Sources:
- [ ] Historical stock price data (for chart 01)
- [ ] Historical valuation multiples (for chart 34)

Process:

  1. Verify model and valuation outputs are accessible

  2. Load detailed instructions from references/task4-chart-generation.md

  3. Execute chart generation workflow

  4. Package all charts into a zip file

  5. Deliver zip file

Output: 25-35 Professional Chart Files (PNG/JPG, 300 DPI) packaged in zip

4 MANDATORY Charts (must be present) ⭐:

  • chart_03: Revenue by product (stacked area)

  • chart_04: Revenue by geography (stacked bar)

  • chart_28: DCF sensitivity (2-way heatmap)

  • chart_32: Valuation football field (horizontal bars)

25 REQUIRED Charts (specific list):

  • Investment Summary: chart_01

  • Financial Performance: charts 02, 03⭐, 04⭐, 10, 11, 12, 14

  • Company 101: charts 05, 06, 07, 08, 09, 15, 16

  • Competitive/Market: charts 17, 18

  • Scenario Analysis: chart 13

  • Valuation: charts 28⭐, 29, 30, 31, 32⭐, 33, 34

10 OPTIONAL Charts (for 26-35 range):

  • charts 19-27, 35 (customer acquisition, unit economics, product roadmap, etc.)

IMPORTANT: Task 5 embeds ALL charts created (25-35) for visual density (1 chart per 200-300 words).

File naming: chart_01_description.png, chart_02_description.png, etc.

Deliverable: [Company]_Charts_[Date].zip containing all 25-35 chart files + chart_index.txt

⚠️ DELIVER ONLY THIS 1 ZIP FILE. NO completion summaries, no separate chart lists, no extra documents.

⚠️ DO NOT TAKE SHORTCUTS:

  • ✅ Create ALL 25 required charts minimum (specific list provided in task4-chart-generation.md)

  • ✅ Include ALL 4 mandatory charts:

    • chart_03: Revenue by product (stacked area) ⭐

    • chart_04: Revenue by geography (stacked bar) ⭐

    • chart_28: DCF sensitivity (heatmap) ⭐

    • chart_32: Valuation football field ⭐

  • ✅ Optional: Add 1-10 more charts to reach 26-35 total for greater visual density

  • ✅ Generate professional-quality charts at 300 DPI (not low-res placeholders)

  • ✅ Create unique, well-formatted charts for each visualization

  • ✅ Package all charts in zip file with chart index

  • ❌ Do not create only 10-15 charts (minimum is 25)

  • ❌ Do not skip any of the 4 mandatory charts

  • ❌ Do not use low-quality/placeholder images

Verification before proceeding to Task 5:

  • [ ] Minimum 25 chart files created (required)

  • [ ] All 4 mandatory charts present:

    • [ ] chart_03: Revenue by product ⭐

    • [ ] chart_04: Revenue by geography ⭐

    • [ ] chart_28: DCF sensitivity ⭐

    • [ ] chart_32: Valuation football field ⭐

  • [ ] All charts open and display correctly

  • [ ] Charts saved at 300 DPI (print quality)

  • [ ] Chart index created listing all files with categories

  • [ ] All charts packaged in zip file

  • [ ] File naming follows convention: chart_##_description.png


Task 5: Report Assembly

Purpose: Write and assemble the comprehensive final DOCX report.

Prerequisites: ⚠️ Verify before starting

  • Required: Company research from Task 1

    • All 6-8K words of content

    • Management bios

    • Competitive analysis

    • Risk assessment

  • Required: Financial model from Task 2

    • Excel workbook

    • All projections and scenarios

  • Required: Valuation analysis from Task 3

    • Price target and recommendation

    • DCF, comps, precedent transactions

    • All valuation data

  • Required: Chart files from Task 4

    • Zip file containing all 25-35 PNG/JPG files

    • Chart index included in zip

⚠️ CRITICAL: DO NOT START THIS TASK UNLESS ALL TASKS 1-4 ARE COMPLETE

This is the final assembly task. It cannot be completed without all previous work products.

IF ANY OF TASKS 1, 2, 3, OR 4 ARE NOT COMPLETE: Stop immediately and inform the user which tasks need to be completed first. The specific requirements are:

  • Task 1: Company research document (6-8K words)

  • Task 2: Financial model with all 6 tabs

  • Task 3: Valuation analysis with price target and recommendation

  • Task 4: Charts zip file with 25-35 charts

Do not attempt to create placeholder content, substitute missing sections, or assemble an incomplete report. The report requires ALL inputs to be publication-ready.

Input Verification:

BEFORE STARTING - ALL TASKS MUST BE COMPLETE:

Task 1 Verification:
- [ ] Company research document exists? (6-8K words)
- [ ] Management bios complete? (300-400 words × 3-4 execs)
- [ ] Competitive analysis complete? (5-10 competitors)
- [ ] Risk assessment complete? (8-12 risks)

Task 2 Verification:
- [ ] Financial model exists and can be opened?
- [ ] Model has projections (5 years)?
- [ ] Scenarios exist (Bull/Base/Bear)?

Task 3 Verification:
- [ ] Valuation analysis complete?
- [ ] Price target determined?
- [ ] Recommendation set? (BUY/HOLD/SELL)
- [ ] DCF and comps complete?

Task 4 Verification:
- [ ] Chart zip file exists?
- [ ] Can extract/access all 25-35 chart files from zip?
- [ ] All 4 mandatory charts present?
  - [ ] Revenue by product (stacked area)
  - [ ] Revenue by geography (stacked bar)
  - [ ] DCF sensitivity (heatmap)
  - [ ] Valuation football field
- [ ] Chart files accessible and can be opened?

IF ANY VERIFICATION FAILS: Stop and complete missing task first.

Process:

  1. CRITICAL: Verify ALL prerequisites before starting

  2. Load detailed instructions from references/task5-report-assembly.md

  3. Execute report assembly workflow using Claude's built-in skills:

    • Use DOCX skill to create and manipulate the Word document

    • Use XLSX skill to read Excel data from Task 2/3

    • Use Read tool to read Task 1 and Task 3 markdown files

    • Read Task 1 .md file → Convert to Word formatting → Insert charts inline

    • Read Task 2 .xlsx file → Extract tables → Write quantitative analysis

    • Read Task 3 .md file + Excel tabs → Copy/adapt valuation analysis

    • Insert Task 4 .png chart files throughout using DOCX skill

    • Create text-dense report with charts interspersed every 200-300 words

  4. Save and deliver final DOCX report

Key Principles:

  • Use Claude's DOCX and XLSX skills (NOT Python libraries)

  • Use actual file operations (read .md/.xlsx/.png files, write .docx file)

  • Good equity research reports are text-dense with lots of illustrating images (60-80% page coverage, 1+ chart per page)

🔥 CRITICAL: GO ALL OUT ON THIS TASK

THIS IS THE FINAL DELIVERABLE. DO NOT TAKE SHORTCUTS.

  • ✅ Use full token budget - This is the culmination of all previous work

  • ✅ Write every section completely - Do not summarize or abbreviate

  • ✅ Hit ALL minimum requirements - 30+ pages, 10,000+ words, 25+ charts, 12+ tables

  • ✅ Be thorough on projection assumptions - 2,000-3,000 words with product-by-product detail

  • ✅ Be comprehensive on scenarios - 1,500-2,000 words with specific Bull/Base/Bear parameters

  • ✅ Insert ALL charts from Task 4 - Not just a few, ALL 25-35 charts throughout

  • ✅ Create ALL tables from Task 2/3 - Extract every financial table, don't skip any

  • ✅ Use Task 1 content verbatim - Copy/paste full Company 101 sections (6-8K words)

  • ✅ Professional quality only - This must be indistinguishable from JPMorgan/Goldman Sachs research

NEVER:

  • ❌ "This section would include..." - WRITE THE ACTUAL SECTION

  • ❌ "Charts would be inserted here..." - INSERT THE ACTUAL CHARTS

  • ❌ "See financial model for details..." - EXTRACT AND INCLUDE THE DETAILS

  • ❌ Skip sections due to length - Every section MUST be complete

  • ❌ Abbreviate for token conservation - Use whatever tokens are needed

This is publication-ready institutional research. Spare no effort, tokens, or detail.

Output: Comprehensive Equity Research Report (.docx)

Specifications:

  • Length: 30-50 pages (MINIMUM 30)

  • Word count: 10,000-15,000 words (MINIMUM 10,000)

  • Charts: 25-35 embedded images

  • Tables: 12-20 comprehensive tables

  • Format: Professional DOCX with clickable hyperlinks

Structure:

  • Page 1: Investment Summary (INITIATING COVERAGE format)

  • Pages 2-5: Investment thesis & risks

  • Pages 6-17: Company 101

  • Pages 18-30: Financial analysis & projections

  • Pages 31-40: Valuation analysis

  • Pages 41-50: Appendices

File name: [Company]_Initiation_Report_[Date].docx

⚠️ DELIVER ONLY THIS 1 DOCX FILE. NO executive summaries, no "highlights" documents, no extra files.

Final Verification:

  • [ ] Report is 30-50 pages

  • [ ] Word count is 10,000-15,000

  • [ ] 25-35 charts embedded

  • [ ] 12-20 tables included

  • [ ] All citations are clickable hyperlinks

  • [ ] Numbers match financial model exactly


Input Verification Protocol

Why Input Verification Matters

Each task has strict prerequisites. Running a task without required inputs will:

  • Waste time with incomplete work

  • Produce low-quality outputs

  • Require rework

Always verify inputs before starting a task.

Verification Checklist by Task

Task 1: ✅ No verification needed (independent)

Task 2: Check historical financials available

Task 3: Check financial model exists and is accessible

Task 4: Check both model (Task 2) AND valuation (Task 3) exist

Task 5: Check ALL previous tasks complete (1, 2, 3, 4)

What to Do if Verification Fails
IF prerequisites are missing:
1. Stop the current task
2. Identify which prerequisite task(s) need to be completed
3. Execute the missing task(s) first
4. Return to current task once prerequisites are met
Example Verification Dialogue
User: "Use initiating-coverage, Task 5 for Tesla"

Claude: "Starting Task 5: Report Assembly for Tesla

VERIFICATION - Checking prerequisites:
- Task 1 (Company research)... ❌ NOT FOUND
- Task 2 (Financial model)... ❌ NOT FOUND
- Task 3 (Valuation)... ❌ NOT FOUND
- Task 4 (Charts)... ❌ NOT FOUND

⚠️ VERIFICATION FAILED

Task 5 requires ALL previous tasks to be complete.

To proceed:
1. Complete Task 1: Company Research
2. Complete Task 2: Financial Modeling
3. Complete Task 3: Valuation Analysis
4. Complete Task 4: Chart Generation
5. Then return to Task 5

Would you like to start with Task 1 first?"

Task Reference Files

Detailed instructions for each task are in separate reference files to keep this skill lean:

  • references/task1-company-research.md - Company research workflow

  • references/task2-financial-modeling.md - Financial modeling workflow

  • references/task3-valuation.md - Valuation methodology

    • Also see: references/valuation-methodologies.md for DCF/comps deep dive

  • references/task4-chart-generation.md - Chart generation workflow

  • references/task5-report-assembly.md - Report writing workflow

    • Also see: assets/report-template.md for report structure

    • Also see: assets/quality-checklist.md for quality checks

When to load reference files: Load ONLY the reference file associated with the specific task being performed. These files are very large - do not load multiple reference files at once. Read the appropriate task reference file at the start of the task for detailed step-by-step instructions.


Quality Standards

All outputs meet institutional standards from leading investment banks (JPMorgan, Goldman Sachs, Morgan Stanley):

  • Comprehensive: Meet all minimum requirements

  • Detailed: Specific data and examples, not generic statements

  • Quantified: Lead with numbers and metrics

  • Cited: Proper sources with clickable hyperlinks

  • Professional: Institutional-quality formatting

  • Accurate: All numbers verified and cross-checked


Important Notes

Task Independence
  • Task 1 can run anytime (no dependencies)

  • Task 2 can run anytime (just needs historical data)

  • Tasks 1 & 2 can run in parallel

  • Task 3 requires Task 2

  • Task 4 requires Tasks 2 & 3

  • Task 5 requires Tasks 1, 2, 3, & 4

Session Management

Same session: Outputs automatically available to subsequent tasks

Different sessions: Reference previous task outputs explicitly

"Use Task 3 with the model from yesterday at [path]"
"Use Task 5 with the research document at [path]"
File Organization

Recommended structure during workflow:

ProjectFolder/
├── Task1_Research/
│   └── [Company]_Research_Document.md
├── Task2_Model/
│   └── [Company]_Financial_Model.xlsx
├── Task3_Valuation/
│   └── [Company]_Valuation_Analysis.pdf
├── Task4_Charts/
│   ├── chart_01.png
│   └── ... (25-35 files)
└── Task5_Report/
    └── [Company]_Initiation_Report.docx
No End-to-End Execution

This skill does NOT support running all tasks automatically in sequence. Each task must be explicitly requested and verified.

Why: This ensures:

  • Quality control at each stage

  • Ability to review outputs before proceeding

  • Flexibility to pause/resume workflow

  • Clear verification of prerequisites


Success Criteria

A successful initiation report workflow should:

  1. Complete all 5 tasks in order

  2. Pass all input verifications

  3. Meet all quality standards

  4. Produce all required deliverables

  5. Numbers cross-check between outputs

  6. Final report is publication-ready

Output quality: Institutional (JPMorgan/Goldman/Morgan Stanley level) Use case: First-time comprehensive coverage of a company

Files

references/task2-financial-modeling.md

Task 2: Financial Modeling - Detailed Workflow

This document provides step-by-step instructions for executing Task 2 (Financial Modeling) of the initiating-coverage skill.

Task Overview

Purpose: Extract historical financials and build comprehensive Excel financial model with projections and scenarios.

Prerequisites: ⚠️ Verify before starting

  • Required: Access to company financial data

    • For public companies: Latest 10-K and recent 10-Qs from SEC EDGAR

    • For private companies: Financial statements or estimates from available sources

    • OR: Pre-extracted historical financials provided by user

  • Optional: Company research (Task 1) for business context

Output: Excel Financial Model (.xlsx) with 6 essential tabs:

  1. Revenue Model

  2. Income Statement

  3. Cash Flow Statement

  4. Balance Sheet

  5. Scenarios

  6. DCF Inputs


Input Verification

BEFORE STARTING - CHECK:

Option A: Extract financials directly (most common)

  • [ ] Have access to 10-K filings (public company)?

  • [ ] OR have access to financial statements (private company)?

  • [ ] Ready to create Excel file for historical extraction?

Option B: User has pre-extracted financials

  • [ ] Historical financials file provided? (.xlsx or other format)

  • [ ] Contains 3-5 years of income statement, cash flow, balance sheet?

  • [ ] Data is clean and ready to use?

Optional Context:

  • [ ] Company research (Task 1) complete for business understanding?

IF VERIFICATION FAILS: Stop and obtain access to financial statements (10-K or equivalent) before proceeding.


Model Structure and Formatting

Color Coding (Industry Standard)
  • Blue text: Hardcoded inputs (user can change)

  • Black text: Formulas and calculations

  • Green text: Links to other sheets

  • Red text: Errors or flags (should be resolved)

Formatting Standards
  • Professional borders and shading

  • Clear section headers

  • Grouped rows for collapsibility

  • Named ranges for key inputs/outputs

  • No hardcoded numbers in formulas (except constants like 12 months)

  • Clear units ($ thousands, $ millions, etc.)

Formula Best Practices
  • All numbers should flow from assumptions

  • Change an assumption → entire model updates

  • No circular references

  • Use named ranges for key cells

  • Keep formulas simple and auditable

  • Add comments for complex calculations


Step-by-Step Modeling Workflow

Step 1: Extract Historical Financials

If historical financials are already extracted, skip to Step 2.

For Public Companies:

  1. Download 10-K Filing

  2. Create Historical Financials Excel File

    • File name: [Company]_Historical_Financials_[Date].xlsx

    • This file will be the foundation for the model

  3. Extract Income Statement (3-5 years)

    • Create Sheet 1: "Historical Income Statement"

    • Extract ALL line items for 3-5 years:

      • Revenue (total and by segment if disclosed)

      • Cost of revenue / COGS

      • Gross profit

      • Operating expenses (R&D, Sales & Marketing, G&A broken out)

      • EBITDA (calculate if not disclosed: EBIT + D&A)

      • EBIT / Operating income

      • Interest expense/income

      • Other income/expense

      • Pre-tax income

      • Income tax and tax rate

      • Net income

      • EPS (basic and diluted)

      • Shares outstanding (basic and diluted)

  4. Extract Cash Flow Statement (3-5 years)

    • Create Sheet 2: "Historical Cash Flow"

    • Extract ALL line items:

      • Operating activities (starting from net income)

      • Depreciation & amortization

      • Stock-based compensation

      • Changes in working capital (receivables, inventory, payables)

      • Cash from operations

      • Investing activities (CapEx, acquisitions)

      • Financing activities (debt issuance/repayment, equity, dividends)

      • Net change in cash

      • Beginning and ending cash

  5. Extract Balance Sheet (3-5 years)

    • Create Sheet 3: "Historical Balance Sheet"

    • Extract ALL line items:

      • Current assets (cash, receivables, inventory, other)

      • Non-current assets (PP&E, intangibles, goodwill)

      • Total assets

      • Current liabilities (payables, accrued expenses, current debt)

      • Non-current liabilities (long-term debt, deferred taxes)

      • Total liabilities

      • Shareholders' equity (common stock, retained earnings)

      • Total liabilities + equity

  6. Calculate Historical Metrics

    • Create Sheet 4: "Historical Metrics"

    • Calculate from statements:

      • Revenue growth % (YoY)

      • Gross margin %

      • EBITDA margin %

      • Operating margin %

      • Net margin %

      • Free cash flow (CFO - CapEx)

      • FCF margin %

      • ROIC (approximate: NOPAT / Invested Capital)

      • Debt/Equity ratio

      • Current ratio (Current Assets / Current Liabilities)

  7. Document Sources and Notes

    • Create Sheet 5: "Notes"

    • Document:

      • 10-K filing date and fiscal year end

      • Any one-time items or adjustments noted

      • Non-GAAP vs GAAP differences

      • Segment breakdown (if revenue split by product/geography)

      • Data quality notes and limitations

For Private Companies:

  1. Gather Available Data

    • Financial statements (if available)

    • Press releases with revenue figures

    • Funding announcements

    • Industry estimates or comparable company data

  2. Create Simplified Historical File

    • Estimated revenue (if available)

    • Estimated margins (from comparables if needed)

    • Key ratios and metrics

    • Document all assumptions and sources

Verification:

  • [ ] All 3 financial statements extracted (3-5 years)

  • [ ] Numbers reconcile across statements (net income ties)

  • [ ] Key metrics calculated correctly

  • [ ] Excel file saved and can be opened

  • [ ] Data sources documented (10-K dates, page numbers)

Foundation for projection model is now complete. Proceed to Step 2.

  • Capital expenditures

  • Working capital items

  • Debt and interest expense

  • Share count (basic and diluted)

  1. Organize historical data for entry

    • Prepare 3-5 years of actuals

    • Will be entered directly into Income Statement, Cash Flow Statement, and Balance Sheet tabs

    • Historical years in columns, projected years following

  2. Calculate historical trends

    • Revenue CAGR

    • Margin progression

    • OpEx leverage

    • Working capital patterns

    • CapEx as % of revenue

    • These trends will inform projection assumptions

Note: Assumptions will be documented directly in each tab as blue text inputs, not in a separate tab.

Step 2: Model Revenue

CRITICAL: This is the most important and detailed part of the model.

A. Revenue by Product/Category (20-30 rows)

Create detailed table:

                        2021A   2022A   2023A   2024A   2025E   2026E   2027E   2028E   2029E
Product Category A
  Sub-product A1        XX      XX      XX      XX      XX      XX      XX      XX      XX
  Sub-product A2        XX      XX      XX      XX      XX      XX      XX      XX      XX
  Sub-product A3        XX      XX      XX      XX      XX      XX      XX      XX      XX
  Category A Total      XX      XX      XX      XX      XX      XX      XX      XX      XX
  % of Total Rev        X%      X%      X%      X%      X%      X%      X%      X%      X%
  YoY Growth %          -       X%      X%      X%      X%      X%      X%      X%      X%

Product Category B
  [Similar structure]

[Continue for all product categories]

Services Revenue        XX      XX      XX      XX      XX      XX      XX      XX      XX
Other Revenue           XX      XX      XX      XX      XX      XX      XX      XX      XX

TOTAL REVENUE           XX      XX      XX      XX      XX      XX      XX      XX      XX
Total Revenue Growth %  -       X%      X%      X%      X%      X%      X%      X%      X%

Key Requirements:

  • Show absolute revenue ($M) for each category

  • Calculate % of total revenue for each category

  • Show YoY growth % for each category

  • Must have granular sub-categories (not just 3-5 top-level categories)

  • Show mix shift over time

  • Link all projections to Assumptions tab

B. Revenue by Geography (15-20 rows)

Create detailed table:

                        2021A   2022A   2023A   2024A   2025E   2026E   2027E   2028E   2029E
North America
  United States         XX      XX      XX      XX      XX      XX      XX      XX      XX
  Canada                XX      XX      XX      XX      XX      XX      XX      XX      XX
  Mexico                XX      XX      XX      XX      XX      XX      XX      XX      XX
  NA Total              XX      XX      XX      XX      XX      XX      XX      XX      XX
  % of Total            X%      X%      X%      X%      X%      X%      X%      X%      X%
  YoY Growth %          -       X%      X%      X%      X%      X%      X%      X%      X%

Europe
  UK                    XX      XX      XX      XX      XX      XX      XX      XX      XX
  Germany               XX      XX      XX      XX      XX      XX      XX      XX      XX
  France                XX      XX      XX      XX      XX      XX      XX      XX      XX
  Other Europe          XX      XX      XX      XX      XX      XX      XX      XX      XX
  Europe Total          XX      XX      XX      XX      XX      XX      XX      XX      XX
  % of Total            X%      X%      X%      X%      X%      X%      X%      X%      X%
  YoY Growth %          -       X%      X%      X%      X%      X%      X%      X%      X%

Asia-Pacific
  [Similar structure]

Rest of World
  [Similar structure]

TOTAL REVENUE           XX      XX      XX      XX      XX      XX      XX      XX      XX

Verification:

  • Revenue by product total = Revenue by geography total = Total revenue

  • All percentages sum to 100%

  • Growth rates calculated correctly

C. Revenue by Channel (if applicable)
                        2021A   2022A   2023A   2024A   2025E   2026E   2027E   2028E   2029E
Direct Sales            XX      XX      XX      XX      XX      XX      XX      XX      XX
E-commerce/Online       XX      XX      XX      XX      XX      XX      XX      XX      XX
Wholesale/Partner       XX      XX      XX      XX      XX      XX      XX      XX      XX
Retail Stores
  Company-owned stores  XX      XX      XX      XX      XX      XX      XX      XX      XX
  Store count           XX      XX      XX      XX      XX      XX      XX      XX      XX
  Sales per store       XX      XX      XX      XX      XX      XX      XX      XX      XX
Other Channels          XX      XX      XX      XX      XX      XX      XX      XX      XX

TOTAL REVENUE           XX      XX      XX      XX      XX      XX      XX      XX      XX
Step 3: Model Operating Expenses
A. Cost of Revenue
  1. Break down COGS components

    • Product costs (materials, manufacturing)

    • Shipping and logistics

    • Service delivery costs

    • Other direct costs

  2. Link to revenue

    • Calculate COGS as % of revenue

    • Model gross margin by year

    • Link to Assumptions tab

B. R&D Expenses
Research & Development  2021A   2022A   2023A   2024A   2025E   2026E   2027E   2028E   2029E
R&D Headcount           XX      XX      XX      XX      XX      XX      XX      XX      XX
R&D Comp per head       XX      XX      XX      XX      XX      XX      XX      XX      XX
R&D Personnel Costs     XX      XX      XX      XX      XX      XX      XX      XX      XX
R&D Other Costs         XX      XX      XX      XX      XX      XX      XX      XX      XX
Total R&D               XX      XX      XX      XX      XX      XX      XX      XX      XX
% of Revenue            X%      X%      X%      X%      X%      X%      X%      X%      X%
C. Sales & Marketing Expenses
Sales & Marketing       2021A   2022A   2023A   2024A   2025E   2026E   2027E   2028E   2029E
S&M Headcount           XX      XX      XX      XX      XX      XX      XX      XX      XX
S&M Comp per head       XX      XX      XX      XX      XX      XX      XX      XX      XX
S&M Personnel Costs     XX      XX      XX      XX      XX      XX      XX      XX      XX
Marketing Spend         XX      XX      XX      XX      XX      XX      XX      XX      XX
S&M Other Costs         XX      XX      XX      XX      XX      XX      XX      XX      XX
Total S&M               XX      XX      XX      XX      XX      XX      XX      XX      XX
% of Revenue            X%      X%      X%      X%      X%      X%      X%      X%      X%
D. General & Administrative
G&A                     2021A   2022A   2023A   2024A   2025E   2026E   2027E   2028E   2029E
G&A Headcount           XX      XX      XX      XX      XX      XX      XX      XX      XX
G&A Comp per head       XX      XX      XX      XX      XX      XX      XX      XX      XX
G&A Personnel Costs     XX      XX      XX      XX      XX      XX      XX      XX      XX
G&A Other Costs         XX      XX      XX      XX      XX      XX      XX      XX      XX
Total G&A               XX      XX      XX      XX      XX      XX      XX      XX      XX
% of Revenue            X%      X%      X%      X%      X%      X%      X%      X%      X%
E. Depreciation & Amortization
  • Link to CapEx schedule

  • Apply depreciation rates from Assumptions

  • Calculate annual D&A

Step 4: Build Income Statement

Create full P&L with 40-50 line items:

INCOME STATEMENT        2021A   2022A   2023A   2024A   2025E   2026E   2027E   2028E   2029E

REVENUE
[Link to Revenue Model tab]
Total Revenue           XX      XX      XX      XX      XX      XX      XX      XX      XX
  YoY Growth %          -       X%      X%      X%      X%      X%      X%      X%      X%

COST OF REVENUE
[Link to COGS breakdown]
Total COGS              XX      XX      XX      XX      XX      XX      XX      XX      XX

GROSS PROFIT            XX      XX      XX      XX      XX      XX      XX      XX      XX
  Gross Margin %        X%      X%      X%      X%      X%      X%      X%      X%      X%

OPERATING EXPENSES
Total R&D               XX      XX      XX      XX      XX      XX      XX      XX      XX
  % of Revenue          X%      X%      X%      X%      X%      X%      X%      X%      X%
Total S&M               XX      XX      XX      XX      XX      XX      XX      XX      XX
  % of Revenue          X%      X%      X%      X%      X%      X%      X%      X%      X%
Total G&A               XX      XX      XX      XX      XX      XX      XX      XX      XX
  % of Revenue          X%      X%      X%      X%      X%      X%      X%      X%      X%
Depreciation & Amort.   XX      XX      XX      XX      XX      XX      XX      XX      XX

Total Operating Exp.    XX      XX      XX      XX      XX      XX      XX      XX      XX
  % of Revenue          X%      X%      X%      X%      X%      X%      X%      X%      X%

EBITDA                  XX      XX      XX      XX      XX      XX      XX      XX      XX
  EBITDA Margin %       X%      X%      X%      X%      X%      X%      X%      X%      X%

EBIT                    XX      XX      XX      XX      XX      XX      XX      XX      XX
  EBIT Margin %         X%      X%      X%      X%      X%      X%      X%      X%      X%

Interest expense        (XX)    (XX)    (XX)    (XX)    (XX)    (XX)    (XX)    (XX)    (XX)
Interest income         XX      XX      XX      XX      XX      XX      XX      XX      XX
Other income/(expense)  XX      XX      XX      XX      XX      XX      XX      XX      XX

Pre-tax income          XX      XX      XX      XX      XX      XX      XX      XX      XX

Income tax              (XX)    (XX)    (XX)    (XX)    (XX)    (XX)    (XX)    (XX)    (XX)
  Tax rate %            X%      X%      X%      X%      X%      X%      X%      X%      X%

NET INCOME              XX      XX      XX      XX      XX      XX      XX      XX      XX
  Net Margin %          X%      X%      X%      X%      X%      X%      X%      X%      X%

SHARES OUTSTANDING
Basic shares (M)        XX      XX      XX      XX      XX      XX      XX      XX      XX
Diluted shares (M)      XX      XX      XX      XX      XX      XX      XX      XX      XX

EARNINGS PER SHARE
Basic EPS               $X.XX   $X.XX   $X.XX   $X.XX   $X.XX   $X.XX   $X.XX   $X.XX   $X.XX
Diluted EPS             $X.XX   $X.XX   $X.XX   $X.XX   $X.XX   $X.XX   $X.XX   $X.XX   $X.XX
Step 5: Build Cash Flow Statement
CASH FLOW STATEMENT     2021A   2022A   2023A   2024A   2025E   2026E   2027E   2028E   2029E

OPERATING ACTIVITIES
Net Income              XX      XX      XX      XX      XX      XX      XX      XX      XX
Adjustments:
  Depreciation & Amort. XX      XX      XX      XX      XX      XX      XX      XX      XX
  Stock-based comp      XX      XX      XX      XX      XX      XX      XX      XX      XX
  Other non-cash        XX      XX      XX      XX      XX      XX      XX      XX      XX

Changes in WC:
  Accounts Receivable   (XX)    (XX)    (XX)    (XX)    (XX)    (XX)    (XX)    (XX)    (XX)
  Inventory             (XX)    (XX)    (XX)    (XX)    (XX)    (XX)    (XX)    (XX)    (XX)
  Accounts Payable      XX      XX      XX      XX      XX      XX      XX      XX      XX
  Other working capital (XX)    (XX)    (XX)    (XX)    (XX)    (XX)    (XX)    (XX)    (XX)

Cash from Operations    XX      XX      XX      XX      XX      XX      XX      XX      XX

INVESTING ACTIVITIES
Capital Expenditures    (XX)    (XX)    (XX)    (XX)    (XX)    (XX)    (XX)    (XX)    (XX)
Acquisitions            (XX)    (XX)    (XX)    (XX)    (XX)    (XX)    (XX)    (XX)    (XX)
Other investing         XX      XX      XX      XX      XX      XX      XX      XX      XX

Cash from Investing     (XX)    (XX)    (XX)    (XX)    (XX)    (XX)    (XX)    (XX)    (XX)

FREE CASH FLOW          XX      XX      XX      XX      XX      XX      XX      XX      XX
  FCF Margin %          X%      X%      X%      X%      X%      X%      X%      X%      X%

FINANCING ACTIVITIES
Debt issuance           XX      XX      XX      XX      XX      XX      XX      XX      XX
Debt repayment          (XX)    (XX)    (XX)    (XX)    (XX)    (XX)    (XX)    (XX)    (XX)
Equity issuance         XX      XX      XX      XX      XX      XX      XX      XX      XX
Dividends paid          (XX)    (XX)    (XX)    (XX)    (XX)    (XX)    (XX)    (XX)    (XX)
Other financing         XX      XX      XX      XX      XX      XX      XX      XX      XX

Cash from Financing     XX      XX      XX      XX      XX      XX      XX      XX      XX

NET CHANGE IN CASH      XX      XX      XX      XX      XX      XX      XX      XX      XX

Beginning Cash          XX      XX      XX      XX      XX      XX      XX      XX      XX
Ending Cash             XX      XX      XX      XX      XX      XX      XX      XX      XX
Step 6: Build Balance Sheet

Create full balance sheet with 35-45 line items:

BALANCE SHEET           2021A   2022A   2023A   2024A   2025E   2026E   2027E   2028E   2029E

ASSETS
Current Assets:
  Cash & Equivalents    XX      XX      XX      XX      XX      XX      XX      XX      XX
  Accounts Receivable   XX      XX      XX      XX      XX      XX      XX      XX      XX
  Inventory             XX      XX      XX      XX      XX      XX      XX      XX      XX
  Prepaid expenses      XX      XX      XX      XX      XX      XX      XX      XX      XX
  Other current assets  XX      XX      XX      XX      XX      XX      XX      XX      XX
Total Current Assets    XX      XX      XX      XX      XX      XX      XX      XX      XX

Non-Current Assets:
  PP&E, gross           XX      XX      XX      XX      XX      XX      XX      XX      XX
  Accumulated Depr.     (XX)    (XX)    (XX)    (XX)    (XX)    (XX)    (XX)    (XX)    (XX)
  PP&E, net             XX      XX      XX      XX      XX      XX      XX      XX      XX
  Intangible assets     XX      XX      XX      XX      XX      XX      XX      XX      XX
  Goodwill              XX      XX      XX      XX      XX      XX      XX      XX      XX
  Other non-current     XX      XX      XX      XX      XX      XX      XX      XX      XX
Total Non-Current       XX      XX      XX      XX      XX      XX      XX      XX      XX

TOTAL ASSETS            XX      XX      XX      XX      XX      XX      XX      XX      XX

LIABILITIES
Current Liabilities:
  Accounts Payable      XX      XX      XX      XX      XX      XX      XX      XX      XX
  Accrued expenses      XX      XX      XX      XX      XX      XX      XX      XX      XX
  Deferred revenue      XX      XX      XX      XX      XX      XX      XX      XX      XX
  Current debt          XX      XX      XX      XX      XX      XX      XX      XX      XX
  Other current liab.   XX      XX      XX      XX      XX      XX      XX      XX      XX
Total Current Liab.     XX      XX      XX      XX      XX      XX      XX      XX      XX

Non-Current Liabilities:
  Long-term debt        XX      XX      XX      XX      XX      XX      XX      XX      XX
  Deferred taxes        XX      XX      XX      XX      XX      XX      XX      XX      XX
  Other non-current     XX      XX      XX      XX      XX      XX      XX      XX      XX
Total Non-Current Liab. XX      XX      XX      XX      XX      XX      XX      XX      XX

TOTAL LIABILITIES       XX      XX      XX      XX      XX      XX      XX      XX      XX

EQUITY
  Common stock          XX      XX      XX      XX      XX      XX      XX      XX      XX
  Additional paid-in    XX      XX      XX      XX      XX      XX      XX      XX      XX
  Retained earnings     XX      XX      XX      XX      XX      XX      XX      XX      XX
  Treasury stock        (XX)    (XX)    (XX)    (XX)    (XX)    (XX)    (XX)    (XX)    (XX)
  Other equity          XX      XX      XX      XX      XX      XX      XX      XX      XX
TOTAL EQUITY            XX      XX      XX      XX      XX      XX      XX      XX      XX

TOTAL LIAB + EQUITY     XX      XX      XX      XX      XX      XX      XX      XX      XX

BALANCE CHECK           OK      OK      OK      OK      OK      OK      OK      OK      OK

Balance Check Formula:

  • Total Assets must equal Total Liabilities + Equity for each year

  • Flag any imbalances in red

Step 7: Build DCF Inputs Tab

Prepare inputs for valuation (Task 3):

DCF INPUTS              2025E   2026E   2027E   2028E   2029E

EBIT                    XX      XX      XX      XX      XX
Tax Rate                X%      X%      X%      X%      X%
NOPAT                   XX      XX      XX      XX      XX

Add: D&A                XX      XX      XX      XX      XX
Less: CapEx             (XX)    (XX)    (XX)    (XX)    (XX)
Less: Chg in NWC        (XX)    (XX)    (XX)    (XX)    (XX)

UNLEVERED FCF           XX      XX      XX      XX      XX

Terminal Year Metrics:
  2029E Revenue         $X,XXX
  2029E EBITDA          $XXX
  2029E EBIT            $XXX
  2029E Unlevered FCF   $XXX
Step 8: Build Scenarios Tab

Create three scenarios with different assumptions:

Scenario Assumptions Table
Assumption                      Bull        Base        Bear
Revenue CAGR (2025-2029)        XX%         XX%         XX%
Gross Margin 2029E              XX%         XX%         XX%
EBITDA Margin 2029E             XX%         XX%         XX%
CapEx as % of Revenue           X%          X%          X%
[Add other key assumptions]
Scenario Output Table
Metric                          Bull        Base        Bear
2029E Revenue ($M)              $X,XXX      $X,XXX      $X,XXX
2029E EBITDA ($M)               $XXX        $XXX        $XXX
2029E EBITDA Margin             XX%         XX%         XX%
2029E Net Income ($M)           $XXX        $XXX        $XXX
2029E EPS                       $X.XX       $X.XX       $X.XX
2029E FCF ($M)                  $XXX        $XXX        $XXX
2029E FCF Margin                XX%         XX%         XX%

Cumulative FCF 2025-2029 ($M)   $XXX        $XXX        $XXX

Document scenario rationale:

  • Bull case: [Describe optimistic but achievable assumptions]

  • Base case: [Describe most likely scenario]

  • Bear case: [Describe downside risks and triggers]

Step 9: Quality Check

Verify model integrity:

  1. [ ] Test all formulas (spot check calculations)

  2. [ ] Change assumption → verify model updates correctly

  3. [ ] Test scenario switching

  4. [ ] Verify color coding (blue/black/green)

  5. [ ] Check balance sheet balances for all years

  6. [ ] Verify no circular references (Excel will flag)

  7. [ ] Check for hardcoded numbers in projections

  8. [ ] Verify all cross-sheet links work

  9. [ ] Test that revenue totals tie across all tabs

  10. [ ] Review formatting and presentation


Quality Standards

Model Integrity
  • All formulas link properly across sheets

  • No hardcoded numbers in projections (except in Assumptions tab)

  • No circular references

  • Balance sheet balances for all years

  • Scenario switching works properly

Completeness
  • All 6 essential tabs: Revenue Model, Income Statement, Cash Flow Statement, Balance Sheet, Scenarios, DCF Inputs

  • 40-50 line items in Income Statement

  • 20-30 rows in Revenue Model (product breakdown)

  • 15-20 rows in Revenue Model (geography breakdown)

  • Full cash flow and balance sheet with all line items

  • Bull/Base/Bear scenarios complete

Professional Formatting
  • Consistent color coding (blue/black/green)

  • Clear headers and labels

  • Proper borders and shading

  • Named ranges for key cells

  • Grouped rows for collapsibility

  • Units clearly labeled ($ thousands vs. $ millions)

Documentation
  • Assumptions documented with rationale (blue text cells with comments)

  • Data sources noted in cell comments or notes section within tabs

  • Complex calculations explained with comments

  • Methodology described


File Naming Convention

Save the financial model as: [Company]_Financial_Model_[Date].xlsx

Example: Tesla_Financial_Model_2024-10-27.xlsx


Success Criteria

A successful financial model should:

  1. Have all 6 essential tabs (Revenue Model, Income Statement, Cash Flow Statement, Balance Sheet, Scenarios, DCF Inputs)

  2. Be fully dynamic (change assumption → model updates)

  3. Have no hardcoded numbers in projections

  4. Include detailed revenue breakdowns (20-30 rows by product, 15-20 rows by geography)

  5. Contain 40-50 line items in Income Statement

  6. Include Bull/Base/Bear scenarios

  7. Be professionally formatted with color coding

  8. Balance properly (balance sheet, cash flows)

  9. Be auditable and easy to follow

  10. Support valuation analysis with proper FCF calculations


Common Model Types - Special Considerations

High-Growth Tech/SaaS
  • Focus on ARR growth and net retention

  • Model by product line and geography

  • Heavy R&D and S&M spend

  • Path to profitability timeline

  • Unit economics (LTV/CAC)

E-commerce/Retail
  • Revenue by product category and channel

  • Store count and comp store growth (if applicable)

  • Inventory turns and working capital

  • Fulfillment costs

  • Customer acquisition

Manufacturing/Industrial
  • Production capacity utilization

  • Raw material costs and pricing

  • Gross margin bridge (volume/price/mix/cost)

  • CapEx heavy models

  • Working capital cycles


Next Steps

After completing Task 2, the financial model will be used for:

  • Task 3 (Valuation): DCF inputs, projected financials

  • Task 4 (Charts): Data for revenue trends, margin charts, scenario comparisons

  • Task 5 (Report Assembly): Financial data for report tables and analysis

Requirements and compatibility

Written for: Claude Code, Claude apps

Works with: Claude Code, Claude apps, OpenAI Codex, GitHub Copilot, Cursor, Gemini CLI, Kiro, OpenCode, Goose, Amp, Roo Code, JetBrains Junie, Factory Droid, Devin (ex-Windsurf), Mistral Vibe, OpenHands, Letta

“Works with” means the tool reads the open Agent Skills format; a skill written for one tool may use features others lack.

Needs: Names Claude Code tools

Security

What our scanner noticed· Low risk

  • Instructions that use the network

A static scan is not a guarantee. Skills are third-party content: review a skill before you let an agent use it.

Attribution and licence

Published by
Anthropic
Publisher
Anthropic (Official)
Source
anthropics/financial-services · plugins/vertical-plugins/equity-research/skills/initiating-coverage · commit 6056506
Licence
Apache License 2.0 (redistribution allowed)
  • LICENSE (added by AutoGineer from LICENSE)
  • ATTRIBUTION.md (written by AutoGineer)
Synced

AutoGineer is not affiliated with or endorsed by Anthropic or Anthropic.

Download ZIP

The ZIP holds the skill’s files, its licence files and an ATTRIBUTION.md. Download initiating-coverage.zip