Corp Finance Tools - Core

Corp Finance Tools - Core

You have access to 44 core corporate finance MCP tools for fundamental valuation, credit, PE/M&A, portfolio, fund economics, jurisdiction, three-statement modelling, Monte Carlo, scenario analysis, earnings quality, dividend policy, and financial forensics. All tools return structured JSON with result, methodology, assumptions, warnings, and metadata fields. All monetary math uses rust_decimal (128-bit fixed-point) — never floating-point (except Monte Carlo which uses f64 for performance).

Tool Reference

Valuation

MCP Tool	Purpose	Key Inputs
wacc_calculator	CAPM-based WACC	risk_free_rate, equity_risk_premium, beta, cost_of_debt, tax_rate, debt_weight, equity_weight
dcf_model	FCFF discounted cash flow	base_revenue, revenue_growth_rates, ebitda_margin, wacc, terminal_method, terminal_growth_rate
comps_analysis	Trading comparables	target metrics, comparable companies, multiple types (EV/EBITDA, P/E, etc.)

Credit

MCP Tool	Purpose	Key Inputs
credit_metrics	Full credit ratio suite + synthetic rating	revenue, ebitda, ebit, interest_expense, total_debt, cash, and 10+ balance sheet items
debt_capacity	Maximum debt sizing from constraints	ebitda, interest_rate, max_leverage, min_interest_coverage, min_dscr, min_ffo_to_debt
covenant_compliance	Test actuals vs covenant thresholds	covenants (metric, threshold, direction), actuals (CreditMetricsOutput)
altman_zscore	Altman Z-Score bankruptcy prediction	working_capital, total_assets, retained_earnings, ebit, revenue, total_liabilities, market_cap, book_equity, is_public, is_manufacturing

Private Equity

MCP Tool	Purpose	Key Inputs
returns_calculator	IRR, XIRR, MOIC, Cash-on-Cash	entry_equity, exit_equity, cash_flows, dated_cash_flows
debt_schedule	Multi-tranche amortisation	name, amount, interest_rate, amortisation type, maturity_years, PIK, seniority
sources_uses	Transaction financing summary	enterprise_value, equity_contribution, debt tranches, fees
lbo_model	Full LBO with multi-tranche debt	entry_ev, entry_ebitda, tranches, equity, revenue_growth, ebitda_margin, exit_year, exit_multiple, cash_sweep_pct
waterfall_calculator	GP/LP distribution waterfall	total_proceeds, total_invested, tiers (ROC, pref, catch-up, carry), gp_commitment_pct

M&A

MCP Tool	Purpose	Key Inputs
merger_model	Accretion/dilution analysis	acquirer/target financials, offer_price, consideration type (cash/stock/mixed), synergies, financing rates

Fund Economics & Jurisdiction

MCP Tool	Purpose	Key Inputs
fund_fee_calculator	Fund fee modelling + LP net returns	fund_size, mgmt_fee_rate, perf_fee_rate, hurdle, catch_up, waterfall_type (European/American), gp_commitment, fund_life
gaap_ifrs_reconciliation	GAAP/IFRS accounting reconciliation	source/target standard, revenue, ebitda, total_assets, lease payments, lifo_reserve, dev costs, revaluation surplus
withholding_tax_calculator	Withholding tax with treaty rates	source/investor jurisdiction, income_type, gross_income, is_tax_exempt
portfolio_wht_calculator	Portfolio-level WHT analysis	holdings array (each with jurisdiction, income_type, gross_income)
nav_calculator	NAV with equalisation & multi-class	share_classes (per-class HWM, fees, crystallisation), gross_return, equalisation_method
gp_economics_model	GP economics: fees, carry, break-even	fund_size, fee_rates, carry_rate, hurdle, gp_commitment, fund_life, professionals
investor_net_returns	Gross-to-net after all fees/WHT/blocker	gross_moic, gross_irr, holding_period, fee_rates, wht_rate, blocker_cost
ubti_eci_screening	UBTI/ECI income classification	investor_type, vehicle_structure, income_items, has_debt_financing

Portfolio Analytics

MCP Tool	Purpose	Key Inputs
risk_adjusted_returns	Sharpe, Sortino, Calmar, IR, Treynor	returns series, frequency, risk_free_rate, benchmark_returns
risk_metrics	VaR, CVaR, drawdown, skewness, kurtosis	returns series, confidence_level, frequency
kelly_sizing	Kelly criterion position sizing	win_probability, win_loss_ratio, kelly_fraction, max_position_pct

Scenarios

MCP Tool	Purpose	Key Inputs
sensitivity_matrix	2-way sensitivity grid	model, variable_1, variable_2, base_inputs
scenario_analysis	Bear/Base/Bull with probability weights	scenarios (name, probability, overrides), output_values, base_case_value

Three-Statement Model

MCP Tool	Purpose	Key Inputs
three_statement_model	Linked 3-statement financial projection (IS/BS/CF)	base_revenue, revenue_growth_rates, cost percentages, working capital days, capex_pct, base balance sheet items

Monte Carlo

MCP Tool	Purpose	Key Inputs
monte_carlo_simulation	Generic MC simulation with statistical output	variables (name, distribution), num_simulations, seed
monte_carlo_dcf	Stochastic DCF valuation with confidence intervals	base_fcf, projection_years, distributions for growth/margin/wacc/terminal_growth

Earnings Quality

MCP Tool	Purpose	Key Inputs
beneish_mscore	Beneish M-Score: 8-variable earnings manipulation model	dsri, gmi, aqi, sgi, depi, sgai, lvgi, tata (or raw financials for 2 periods to compute indices)
piotroski_fscore	Piotroski F-Score: 9-signal fundamental strength score	net_income, operating_cash_flow, roa, roa_prior, leverage, leverage_prior, current_ratio, current_ratio_prior, shares_outstanding, shares_prior, gross_margin, gross_margin_prior, asset_turnover, asset_turnover_prior
accrual_quality	Accrual quality analysis: Sloan ratio, Dechow-Dichev, Jones, modified Jones	total_accruals, cash_from_operations, net_income, total_assets, delta_revenue, ppe, delta_receivables, prior period data
revenue_quality	Revenue quality assessment: receivables, deferred revenue, concentration	revenue, receivables, revenue_prior, receivables_prior, deferred_revenue, deferred_revenue_prior, allowance, segment_revenues
earnings_quality_composite	Composite earnings quality score with traffic-light rating	beneish_mscore_output, piotroski_fscore_output, accrual_quality_output, revenue_quality_output, weights (optional)

Dividend Policy

MCP Tool	Purpose	Key Inputs
h_model_ddm	H-Model DDM: Fuller & Hsia declining growth valuation	current_dividend, short_term_growth, long_term_growth, half_life_years, required_return
multistage_ddm	Multi-stage DDM: N-stage with terminal Gordon Growth	current_dividend, growth_stages (rate, years per stage), terminal_growth, required_return
buyback_analysis	Share buyback analysis: EPS accretion/dilution, P/E breakeven	shares_outstanding, current_eps, share_price, buyback_amount, funding_source, cost_of_debt, tax_rate, dividend_per_share
payout_sustainability	Payout sustainability: payout ratio, FCF coverage, Lintner smoothing	dividends_paid, net_income, free_cash_flow, total_debt, ebitda, prior_dividend, target_payout_ratio, speed_of_adjustment
total_shareholder_return	Total shareholder return: price + dividend + buyback attribution	price_begin, price_end, dividends_per_share, shares_repurchased, shares_outstanding, period_years

Financial Forensics

MCP Tool	Purpose	Key Inputs
benfords_law	Benford's Law: digit distribution conformity testing	data_series, test_type (first_digit, second_digit, first_two_digits), significance_level
dupont_analysis	DuPont decomposition: 3-step and 5-step ROE breakdown	net_income, revenue, total_assets, total_equity, interest_expense, pretax_income, tax_expense, prior_period (optional for trend)
zscore_models	Z-Score models: Altman, Ohlson, Zmijewski, Springate	working_capital, total_assets, retained_earnings, ebit, revenue, total_liabilities, market_cap, book_equity, net_income, current_assets, current_liabilities, total_debt, cash_from_operations, is_public, is_manufacturing
peer_benchmarking	Peer benchmarking: percentile ranking, z-score normalisation	target_metrics, peer_metrics (array of peer company metrics), metric_definitions (name, direction: higher_better/lower_better)
red_flag_scoring	Red flag scoring: composite fraud/distress risk assessment	beneish_output, altman_output, piotroski_output, financial_ratios, audit_indicators (auditor_changes, restatements, late_filings, going_concern)

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Response Envelope

Every tool returns this structure:

{
  "result": { },
  "methodology": "DCF (FCFF, 2-stage)",
  "assumptions": { },
  "warnings": ["Terminal growth (3.5%) above long-term GDP"],
  "metadata": {
    "version": "0.1.0",
    "computation_time_us": 1200,
    "precision": "rust_decimal_128bit"
  }
}

Always check warnings — they flag suspicious inputs (beta > 3, ERP > 10%, WACC > 20%, too few comps, etc.).

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Tool Chaining Workflows

Full Valuation

1. wacc_calculator — compute discount rate
2. dcf_model — build DCF using that WACC (or pass wacc_input directly)
3. comps_analysis — cross-check with trading multiples
4. sensitivity_matrix — vary WACC and terminal growth to show range

Credit Assessment

1. credit_metrics — compute all leverage, coverage, cash flow, and liquidity ratios
2. debt_capacity — size maximum debt from constraint analysis
3. covenant_compliance — test actuals against loan covenants

LBO Deal Analysis

1. lbo_model — full LBO with projections, debt service, cash sweep, exit returns
2. Or build manually: sources_uses → debt_schedule → returns_calculator
3. sensitivity_matrix — sensitivity on exit multiple vs EBITDA
4. altman_zscore — check bankruptcy risk at entry leverage

Merger Analysis

1. merger_model — accretion/dilution with consideration structure and synergies
2. sensitivity_matrix — vary synergies vs offer premium
3. credit_metrics — assess combined entity credit profile

Waterfall Distribution

1. waterfall_calculator — GP/LP splits with hurdle, catch-up, carry
2. fund_fee_calculator — full fund economics over fund life

Credit Assessment

1. credit_metrics — compute all leverage, coverage, cash flow, and liquidity ratios
2. altman_zscore — bankruptcy prediction (Z, Z', Z'' variants)
3. debt_capacity — size maximum debt from constraint analysis
4. covenant_compliance — test actuals against loan covenants

Portfolio Review

1. risk_adjusted_returns — Sharpe, Sortino, and peer-relative metrics
2. risk_metrics — VaR, CVaR, drawdown profile
3. kelly_sizing — optimal position sizing
4. scenario_analysis — stress test across bear/base/bull

GAAP/IFRS Reconciliation

1. gaap_ifrs_reconciliation — reconcile between US GAAP and IFRS
   • Adjustments: lease capitalisation (IFRS 16), LIFO→FIFO, dev cost capitalisation (IAS 38), revaluation strip
   • Returns adjusted EBITDA, EBIT, net income, debt, equity, assets + materiality flag

Withholding Tax Analysis

1. withholding_tax_calculator — single holding WHT with treaty rate lookup
2. portfolio_wht_calculator — portfolio-level WHT with optimisation suggestions
   • Covers 15+ jurisdictions, 10+ bilateral tax treaties
   • Provides blocker recommendations for tax-neutral investors

NAV & Fund Administration

1. nav_calculator — multi-class NAV with equalisation
   • Per-class: management fee accrual, performance fee (HWM-based), net NAV, FX conversion
   • Equalisation methods: equalisation shares, series accounting, depreciation deposit
   • Crystallisation: monthly, quarterly, semi-annual, annual, on redemption

GP Economics & Investor Returns

1. gp_economics_model — GP revenue decomposition over fund life
   • Management fees, carried interest, co-invest returns, breakeven AUM
   • Per-professional economics, fee holiday, successor fund offset
2. investor_net_returns — gross-to-net after all fee layers
   • Management fees, carry, fund expenses, WHT, blocker cost, org costs
   • Fee drag in bps, fee breakdown as % of gross

UBTI/ECI Screening

1. ubti_eci_screening — classify income for US tax-exempt investors
   • Classifies: interest, dividend, capital gain, rental, operating business, partnership, royalty, CFC
   • Risk assessment: None/Low/Medium/High
   • Blocker analysis: cost-benefit of US C-corp blocker (21% corp vs 37% trust rate)

Three-Statement Financial Modelling

1. three_statement_model — build linked IS/BS/CF projections
   • Revenue growth, cost structure, working capital (DSO/DIO/DPO), capex, debt service
   • Circular reference resolution (5-iteration convergence on interest expense)
   • Revolver draw / excess cash paydown logic
   • Warnings: leverage > 6x, interest coverage < 2x, negative FCF

Monte Carlo Simulation

1. monte_carlo_simulation — generic MC with configurable distributions
   • Normal, LogNormal, Triangular, Uniform distributions
   • Returns: mean, median, percentiles (P5-P95), histogram, skewness, kurtosis
   • Reproducible with optional seed
2. monte_carlo_dcf — stochastic DCF valuation
   • Vary revenue growth, EBITDA margin, WACC, terminal growth simultaneously
   • Returns: EV percentiles, 90% confidence interval, probability above thresholds

Earnings Quality Assessment

1. beneish_mscore — compute M-Score for earnings manipulation detection
   • 8 variables: DSRI, GMI, AQI, SGI, DEPI, SGAI, LVGI, TATA
   • M-Score > -1.78 suggests possible manipulation
2. piotroski_fscore — assess fundamental strength (0-9)
   • Profitability (4 signals), leverage (3 signals), operating efficiency (2 signals)
   • F-Score >= 8 = strong fundamentals; <= 2 = weak
3. accrual_quality — analyse earnings persistence
   • Sloan ratio, Dechow-Dichev, Jones model for discretionary accruals
4. revenue_quality — assess revenue recognition quality
   • Receivables vs revenue growth, deferred revenue trends, concentration
5. earnings_quality_composite — weighted composite score with traffic-light rating

Dividend Policy Analysis

1. h_model_ddm — H-Model for declining growth assumptions
   • Fuller & Hsia: V = D0(1+gL)/(r-gL) + D0H(gS-gL)/(r-gL)
2. multistage_ddm — explicit growth periods + terminal value
   • N-stage with Gordon Growth terminal value
3. buyback_analysis — compare buyback vs dividend alternatives
   • EPS accretion/dilution, P/E breakeven, tax efficiency
4. payout_sustainability — assess dividend safety
   • Payout ratio, FCF coverage, Lintner smoothing model
5. total_shareholder_return — component attribution of TSR
   • Price + dividend yield + buyback yield

Financial Forensics Workflow

1. benfords_law — test data for manipulation indicators
   • First/second/first-two digit distribution vs Benford expected
   • Chi-squared and MAD conformity tests
2. dupont_analysis — decompose ROE drivers (3-way and 5-way)
   • 3-way: margin x turnover x leverage
   • 5-way: tax burden x interest burden x operating margin x turnover x leverage
   • Trend analysis with prior period comparison
3. zscore_models — comprehensive distress scoring
   • 5 models: Altman (original/revised/private), Ohlson O-Score, Zmijewski, Springate
   • Composite weighted distress score
4. peer_benchmarking — relative performance analysis
   • Percentile ranking, z-score normalization across peer group
5. red_flag_scoring — composite fraud/distress risk assessment
   • Integrates Beneish, Altman, Piotroski, financial ratios, audit indicators

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CLI Equivalent

The same calculations are available via the cfa binary:

cfa wacc --risk-free-rate 0.04 --equity-risk-premium 0.055 --beta 1.2 \
         --cost-of-debt 0.06 --tax-rate 0.25 --debt-weight 0.3 --equity-weight 0.7

cfa credit-metrics --input financials.json --output table

cfa returns --entry-equity 50000000 --exit-equity 140000000 --output json

cfa sensitivity --model wacc --var1 beta:0.8:1.6:0.1 \
                --var2 equity_risk_premium:0.04:0.07:0.005 --input base.json

cfa lbo --input deal.json --output table

cfa waterfall --input distribution.json

cfa merger --input merger.json

cfa altman-zscore --input financials.json --output table

cfa fund-fees --input fund.json --output table

cfa gaap-ifrs --input reconciliation.json --output table

cfa wht --input wht.json --output json

cfa nav --input nav.json --output table

cfa gp-economics --input gp.json --output table

cfa investor-net-returns --input investor.json --output json

cfa ubti-screening --input ubti.json --output table

cfa three-statement --input model.json --output table

cfa monte-carlo --input mc.json --output json

cfa mc-dcf --input mc_dcf.json --output json

cfa beneish --input mscore.json --output table

cfa piotroski --input fscore.json --output table

cfa accrual-quality --input accrual.json --output json

cfa revenue-quality --input revenue_quality.json --output table

cfa earnings-quality-composite --input eq_composite.json --output json

cfa h-model-ddm --input ddm.json --output table

cfa multistage-ddm --input ddm_multi.json --output json

cfa buyback --input buyback.json --output table

cfa payout-sustainability --input payout.json --output json

cfa total-shareholder-return --input tsr.json --output table

cfa benfords-law --input benfords.json --output table

cfa dupont-analysis --input dupont.json --output json

cfa zscore-models --input zscore.json --output table

cfa peer-benchmarking --input peers.json --output json

cfa red-flag-scoring --input redflags.json --output table

Output formats: --output json (default), --output table, --output csv, --output minimal.

Pipe support: cat data.json | cfa credit-metrics --output table

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Input Conventions

• Rates as decimals: 5% = 0.05, never 5
• Money as raw numbers: $1M = 1000000, not "$1M"
• Currency: specify with currency field (default: USD)
• Dates: ISO 8601 format ("2026-01-15")
• Weights must sum to 1.0: debt_weight + equity_weight = 1.0

Error Handling

Tools return structured errors for:

• InvalidInput: field-level validation (e.g., negative beta, weights not summing to 1.0)
• FinancialImpossibility: terminal growth >= WACC, negative enterprise value
• ConvergenceFailure: IRR/XIRR Newton-Raphson didn't converge (reports iterations and last delta)
• InsufficientData: too few data points for statistical calculations
• DivisionByZero: zero interest expense for coverage ratios, etc.

Always validate tool error responses and report them clearly to the user.