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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The Analyze Free Cash Flow Trends prompt (Claude, ChatGPT, Gemini, Grok)
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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
Frequently Asked Questions
Free cash flow is operating cash flow minus capital expenditures. It represents cash available after maintaining the business. Researchers often use it to assess financial health, dividend sustainability, and capital allocation quality.
No. This prompt is a research aid that structures the analysis. The output should always be verified against the actual SEC filings. Investors may find it useful for organizing their review of the cash flow statement.
The 1-5 rating system forces the AI to make a structured assessment across multiple dimensions rather than producing vague commentary. It makes it easier to compare analyses across different companies.
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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.