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Open finance skill

Margin trend review

Where are margins moving, and what deserves investigation?

Calculate period-over-period gross-margin changes from synthetic financial summaries and flag material movements.

Inputs

  • Revenue by period
  • Direct costs by period
  • Review threshold

Outputs

  • Margin by period
  • Change in percentage points
  • Flagged periods

Checks performed

  • Gross margin calculation
  • Period comparison
  • Threshold exception

Guided synthetic example

See the check from input to decision

Revenue grew in July, but gross profit declined.

This is the operating model we use at Level. The percentages are estimated shares of the work in a typical review. Actual effort varies with data quality, complexity, and the issue found.

1

Start with the source records

About 15% of work
PeriodRevenueDirect costsGross profitMargin
June$100,000$60,000$40,00040%
July$110,000$71,500$38,50035%
2

Run the deterministic check

About 20% of work

Recompute gross margin by period and flag a movement of 3 percentage points or more.

3

Surface the flagged result

About 10% of work

Needs review

Margin fell 5 percentage points and gross profit declined $1,500 despite 10% revenue growth.

4

Use recorded finance judgment to analyze possible reasons

About 25% of work

At Level, we record the review logic, known explanations, and questions our finance professionals use in this situation. AI applies that documented human judgment to organize the most plausible reasons, without pretending it knows which reason is true.

Possible reasons to investigate

The arithmetic shows deterioration, not the cause. Labor overruns, pricing, materials, callbacks, and job mix all require investigation.

5

Make the final human judgment

About 20% of work

A Level finance professional validates the source evidence, challenges the AI-assisted analysis, and decides which explanation is supported.

Which jobs drove the cost increase?
Did labor hours exceed estimate?
Did price or job mix change?
6

Make the operating decision

About 10% of work

Review job-level margin and isolate the jobs or cost categories responsible for the decline.

Use this system

Start with the example, then inspect the structure

  1. Download the invented input and expected output.
  2. Replace one field at a time with a safe test value.
  3. Compare the result with the expected structure.
  4. Have a finance professional review every exception before acting.

MCP preview

run_synthetic_example {"slug":"margin-trend-review"}

Human review is part of the system

This check organizes evidence and surfaces exceptions. A person with finance domain expertise still needs to interpret the result, validate the source records, and discuss the operating decision.

Open source does not mean open client data. We publish reusable finance tools, checks, templates, and playbooks. Client records, workpapers, credentials, communications, and private configurations remain confidential.