pm-investing-literacy

Use when asked to walk me through an annual report, teach me to read this 10-K, explain a company's accounts to a beginner, or tutor me on the financial statements in an uploaded report. Walks a beginner up a fixed six-rung ladder — statement map, balance sheet line by line, operating profit to free cash flow, five sector-appropriate ratios with healthy ranges, the sceptical read, then a reusable checklist and a five-question quiz. Produces a page-referenced tutorial in which every figure cites the page it came from and anything missing is marked 'not disclosed in this report'. Educational, not financial advice.

Use when asked to check whether a figure is audited, which headline numbers sit outside the audited accounts, what 'adjusted' or 'underlying' means in this report, or who is vouching for the numbers in the highlights. For every headline figure in the highlights, chairman's statement and CEO review of an uploaded annual report, states whether it sits inside or outside the audited statements and what was added or removed versus the nearest audited number. Produces a boundary table, the list of figures outside the boundary, and a plain-English summary of who is vouching for what. Educational, not financial advice.

Use when asked to compare two annual reports, put two companies from the same sector side by side, or check whether two companies' adjusted numbers mean the same thing. Takes two uploaded annual reports from one sector and compares them on five ratios computed with identical definitions from audited figures, flagging every place the companies define a metric differently. Produces a page-referenced comparison table, a definitions-differ section (adjusted vs statutory, inside vs outside the audited statements), and three questions to ask before believing either company's highlights. Educational, not financial advice.

Use when asked what a term means in an annual report, to explain EBITDA, goodwill, free cash flow, working capital or diluted EPS, or to define any investing or accounting word in plain English, ideally in the context of an uploaded report. Explains each term the user gives, anchored to the specific document where one is provided. Produces, per term, a one-sentence plain definition, where it appears in this document with the page, why a beginner might misread it, and one thing to check next. Refuses buy, sell and valuation opinions and points to the other skills in the bundle instead. Educational, not financial advice.

Use when asked to reconcile operating profit to free cash flow, walk from EBIT to FCF, explain why profit and cash differ in this report, or show a company's cash conversion from its own accounts. Takes operating profit from an uploaded annual report and walks line by line to free cash flow using the report's own numbers, arithmetic shown at every step. Produces a step table (line, page, amount, running total, one-sentence reason cash and profit diverge), a drift flag on every line where the arithmetic could go wrong, a tie-out to the reported cash flow statement, and an instruction to independently check at least one subtraction. Educational, not financial advice.