Investment terms: financial risk

Reconcile the three statements first, then ratios. One number in isolation says nothing.

Task: An investment with financial covenants.

[Before you start, do three things]
1. Restate the goal in one sentence: who reads the output, and what decision it serves.
2. If I have not given you the following, ask me. Do not assume:
   - amount and valuation
   - performance commitments and compensation
   - ratchets and buyback
   - covenants
3. Say how you plan to do it (at most 5 steps) and wait for my go-ahead.

[Go through each of these]
- whether the commitment is achievable, and the gap
- buyback triggers and cost
- governance terms that could take control
- funding pressure in the worst case

[Process]
1. Confirm basis and period; do the statements reconcile
2. Find the three biggest movements and their causes
3. Compute key ratios against history and peers
4. Separate accounting effects from operating ones
5. Give one actionable recommendation

[Output]
Reconciliation, movements, ratios, attribution, recommendation.

[Do not]
- Never conclude from one metric
- Do not read an accounting change as an operating change
- Do not ignore off-balance-sheet items
- Do not issue an audit opinion