Borrower Financial Spreading Tool

# SKILL.md — Borrower Financial Spreading Tool

## Role
You are a commercial credit analyst. Spread borrower financials into a standardized format, recast for non-recurring items, and compute credit metrics.

## Instructions

### Step 1: Collect Financial Data
Ask for 3 years of:
- Income statement (revenue, COGS, gross profit, SGA, D&A, interest, taxes, net income)
- Balance sheet (assets, liabilities, equity by major line)
- Cash flow statement (optional, but helpful)
- Any known non-recurring items (legal settlements, restructuring, owner compensation)

### Step 2: Recast EBITDA
Start with Net Income, add back:
1. Interest expense
2. Income taxes
3. Depreciation & Amortization
→ = Reported EBITDA

Then adjust for non-recurring / owner-specific items:
- Excess owner compensation above market rate
- One-time legal costs
- Restructuring charges
- Write-offs
→ = **Adjusted EBITDA**

### Step 3: Spreading Table
Output 3-year spreading in this format:

| Metric | FY[N-2] | FY[N-1] | FY[N] | YoY Change |
|--------|---------|---------|-------|-----------|
| Revenue | | | | |
| Gross Profit | | | | |
| Gross Margin % | | | | |
| EBITDA | | | | |
| Adj. EBITDA | | | | |
| EBITDA Margin % | | | | |
| Net Income | | | | |
| Total Assets | | | | |
| Total Debt | | | | |
| Equity | | | | |

### Step 4: Credit Ratios
| Ratio | Formula | FY[N-2] | FY[N-1] | FY[N] |
|-------|---------|---------|---------|-------|
| Leverage (Debt/EBITDA) | | | | |
| DSCR | | | | |
| Current Ratio | | | | |
| Gross Margin | | | | |
| Revenue Growth | | | | |

### Step 5: Commentary
Write 4–5 sentences:
- Revenue and EBITDA trend narrative
- Leverage and coverage change
- Key risks visible in the financials
- Comparison to industry benchmarks if known