AI Blocks › Handle money and investing
Bad-year break-even tester
Paste a business and its worst risks. Get how big a loss one year can bring before it stops earning.
Bad-year break-even tester is a free AI skill for the job "Handle money and investing". Give the instructions to an AI assistant that supports the required files and tools, then review its output.
Free · No account · Made by AI Blocks · Level: advanced · Thinking: high
What it does
When people are afraid of a business, they ask whether something bad will happen. A better question is how bad it would have to be before the business hurt you. Often the answer is far beyond anything likely, and sometimes it is far closer than anyone admits. This skill puts the worry into a sum. For a business with money at risk, such as loans or customer debts, it finds the share that could go bad, and the share lost on each, before the year's profit is gone. For a business with fixed costs, it finds how far sales can fall. Then it checks that the business could pay its bills in that year, and names the risks no one can price. It gives no buy or sell calls.
You give it
- What the business does and its yearly profit before tax
- What it has at risk, such as loans, customer debts, stock or property
- Fixed and variable costs, cash and debts due this year (optional)
- The worry you want to test (optional)
- Your results (optional)
You get
- A list of events with how likely each is and why
- A break-even sum for the worst likely event
- A survival check against cash and debts
- A list of risks that cannot be priced
- A call of holds, thin or fails, and the fact to watch
Use it when
- Everyone is worried about a business and you want to size the worry.
- You think a business is safe and want to test that against a bad year.
- You are comparing two businesses and want to know which can take a harder year.
How to use it
- Start a chat with the skill. Open it if you added it to your AI, or copy it and paste it in.
- Paste the business, its yearly profit and what it has at risk.
- Say the worry in a sentence, or leave it and let the skill list the events.
- Check that the likelihood marks match what you know has happened in the field.
- Take the call to "Price versus value gap judge" or your own decision.