Skills Product & Business Financial Model Narrative Generation

Financial Model Narrative Generation

v20260618
financial-model-narrative
Transforms complex financial model outputs (P&L, balance sheet figures) into clear, structured, and compelling written narratives. Ideal for preparing board packs, investor updates, or executive management reports by translating mere numbers into actionable stories. The output provides headline insights, detailed driver analysis, variance explanations, and robust forward-looking commentary tailored to specific audiences.
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Overview

Financial Model Narrative Skill

Turns financial model outputs into a clear, structured written narrative suitable for board packs, investor updates, or management reporting.

Required Inputs

  • Financial data (paste key figures: revenue, costs, margins, EBITDA, cash)
  • Period covered (month / quarter / annual / multi-year)
  • Audience (board / investors / management / bank / internal)
  • Key message (what is the headline story?)
  • Actuals vs budget / prior period? (comparison context)

Output Structure

1. Headline Summary

3-5 sentences. The financial story in plain English. Lead with the most important insight — not "revenue was X" but what that figure means.

2. Revenue

  • Performance vs prior period / budget
  • Key drivers: what caused the movement
  • Risks or opportunities in the revenue line

3. Costs and Margins

  • Gross margin: % and trend
  • Key cost movements and why
  • EBITDA performance and drivers
  • One-off items clearly flagged

4. Cash and Balance Sheet

  • Cash position and movement
  • Runway (for startups)
  • Key working capital movements

5. Variance Analysis

For each significant variance:

[Line item] — Over/Under by [amount]

  • Cause: [Plain English explanation]
  • Permanent or temporary? One-time / Structural
  • Action being taken: [If applicable]

6. Forward-Looking Commentary

  • Expected next period
  • Key risks to forecast
  • Key opportunities
  • Any reforecast or guidance change

Writing Rules

  • Never just restate a number — always explain what it means
  • Flag variances over 10% automatically
  • Use past tense for actuals, conditional for forecast
  • One insight per paragraph

Quality Checks

  • Headline summary leads with meaning, not just the number
  • Every significant variance has a cause, permanence, and action
  • Forward-looking commentary includes specific risks and opportunities
  • Audience-appropriate language (board vs investor vs management)
  • One-off items clearly distinguished from recurring items

Anti-Patterns

  • Do not list numbers without explaining what is driving them — narrative must go beyond restating the figures
  • Do not mix one-off items with recurring performance without clearly distinguishing them
  • Do not write the same level of detail for all line items — focus depth on the items that matter most
  • Do not omit forward-looking commentary — a narrative without outlook is incomplete for board or investor audiences
  • Do not use technical accounting language without translation — the audience is executives, not accountants

Example Trigger Phrases

  • "Write a financial narrative for these results: [paste numbers]"
  • "Turn this P&L into a board narrative"
  • "Write the finance section of our board pack"
  • "Explain these financial results in plain English"
Info
Name financial-model-narrative
Version v20260618
Size 3.14KB
Updated At 2026-06-19
Language