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Analyze Free Cash Flow Trends: AI Prompt for Claude & ChatGPT
Copy this Claude prompt to analyze free cash flow trends for stock research. Works with Claude, ChatGPT, Gemini, and Grok using 10-K excerpts.
This AI prompt for stock research decomposes free cash flow, conversion, and capex intensity from pasted 10-K figures. Copy the Claude, ChatGPT, Gemini, or Grok template below and verify each line against the filing.
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Fundamental AnalysisIntermediate
The Analyze Free Cash Flow Trends prompt (Claude, ChatGPT, Gemini, Grok)
Select a watchlist or portfolio ticker to pre-fill placeholders, or copy and replace manually.
You are a senior equity research analyst with 15+ years of experience covering [SECTOR]. Perform a rigorous free cash flow (FCF) deep-dive on [COMPANY_NAME] (ticker: [TICKER]). ## Context Analyze FCF trends over the past [N_YEARS] fiscal years using only data from SEC filings (10-K, 10-Q). Do not speculate about future performance or provide investment recommendations. ## Required Analysis ### Part 1 - FCF Summary Table Create a year-by-year table with columns: | Fiscal Year | Revenue | Operating Cash Flow | CapEx | FCF | FCF Margin (%) | FCF / Net Income (%) | ### Part 2 - Driver Decomposition For each year, break down FCF into: - Operating cash flow drivers (net income, D&A, stock-based comp, working capital changes) - Capital expenditure breakdown: maintenance CapEx vs growth CapEx (estimate if not disclosed) - One-time or non-recurring items that distort the trend (quantify in $) ### Part 3 - Quality & Conversion Assessment - Calculate the FCF conversion ratio (FCF / Net Income) for each year. Flag any year below 70% or above 130% and explain why. - Compute CapEx intensity (CapEx as % of revenue). Compare to 2-3 sector peers if data is available. - Assess whether working capital is a persistent cash drain or source. Identify the largest swing items (receivables, inventory, payables). ### Part 4 - Sustainability Scorecard Rate each dimension (1-5 scale) with a one-line justification: - FCF consistency (low volatility year-over-year) - CapEx efficiency (declining intensity or stable with growth) - Earnings quality (FCF tracks or exceeds net income) - Working capital management (neutral or positive contribution) - Absence of one-time distortions ### Part 5 - Follow-Up Research Questions List 3-5 specific, actionable questions a researcher should investigate next (e.g. "What drove the $X increase in receivables in FY[YEAR]?"). ### Part 6 - Visual Verification & Chart Follow-Up - Identify 2-3 visual inflection points that require multi-year chart inspection (e.g. operating cash flow vs capex trends, FCF conversion cycles, and margin trajectory). - Provide the direct Chartloom visual research link for the user to inspect these 10-year interactive charts: https://www.chartloom.com/c/ticker/[TICKER] ## Output Format Use clear headers, tables, and bullet points. All language must be neutral and research-oriented - do not suggest whether to buy, sell, or hold. **Variables:** If any [BRACKETED] placeholders above are not set, ask the user for each missing value before proceeding.
Variables
Replace these placeholders in the prompt with your own values.
| Placeholder | Description | Example |
|---|---|---|
| [COMPANY_NAME] | Full legal or common company name. | Apple Inc. |
| [TICKER] | Stock ticker symbol. | AAPL |
| [SECTOR] | Sector or industry for contextual peer comparison. | Consumer Electronics / Technology |
| [N_YEARS] | Number of fiscal years to analyze (recommend 5-10). | 5 |
How to use this prompt
Copy the prompt into your preferred AI assistant. Replace all [BRACKETED] placeholders. For best results, paste the actual cash flow statements from the 10-K alongside the prompt. Use the output as a structured starting point for your own analysis - not as financial advice.
Tips
- Use 5-10 years of history to capture full business cycles; 3 years may miss cyclical patterns.
- Cross-check every number the AI produces against the actual 10-K cash flow statement.
- For capital-intensive sectors (industrials, utilities, energy), the maintenance vs growth CapEx split is critical.
- If FCF conversion is consistently below 80%, investigate whether the company is capitalizing expenses aggressively.
- Paste the actual financial statements into the chat for significantly more accurate analysis.
When to use this prompt
Building the cash flow section of a full fundamental research report
Evaluating FCF consistency before researching dividend sustainability
Comparing capital intensity and FCF conversion across peers in the same industry
Identifying earnings quality concerns via the FCF-to-net-income relationship
Updated 2026-02-20
These prompts are research tools, not financial advice. Outputs should be independently verified. They are not a recommendation to buy, sell, or hold any security. See our disclaimer for more information.