AI Blocks › Handle money and investing
Find out if a company's past profits are a fair guide to what it will earn
Paste cleaned earnings by year and a note on the business. Get whether the record can guide the future, and how much.
Earnings record reliability checker 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
Ten years of profit gives a comforting average. But an average of wild swings is just a sum. A run of good years can rest on a boom price or a peak rate of output. A company can also have changed so much that its old results describe a business that no longer exists. This skill runs six tests. It measures the scatter, looks at what the business is, checks whether the good years were temporary, checks the company's place in its industry, reads the loss years as a question of survival, and sets the trend beside the average. It rates the record as a guide, a partial guide or not a guide, and says how wide the next range should be. It is a method, not financial advice.
You give it
- Cleaned earnings by year, from the earlier steps
- A note on the business covering what it sells, to whom, its costs, its debts and its place in the industry
- Output, price or volume by year (optional)
- Source text (optional)
You get
- The record with its scatter
- A finding for each of the six tests
- A rating of guide, partial guide or not a guide
- How wide the next range should be
- What facts would raise the rating
Use it when
- You have a company's earnings for several years and are about to average them.
- A company's best years came during a boom in its product.
- A company has had losses in some years and you do not know how to treat them.
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 cleaned earnings and a few lines on what the business does.
- Add output and price by year if you have them.
- Read the rating, then the reasons ranked.
- Take the result to "Normal earnings estimator".