financial-metrics-analysis
Analyze year-over-year growth in income statement items and financial metrics using Octagon MCP. Use when retrieving YoY Revenue Growth, Cost of Revenue Growth, Gross Profit Growth, Operating Income Growth, Net Income Growth, or comparing financial performance across fiscal periods for any public co
By octagonai · 358 installs
npx skills add octagonai/skills --skill financial-metrics-analysis
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Financial Metrics Analysis
Retrieve and analyze year over year growth in key income statement items for public companies using the Octagon MCP server.
Prerequisites
Ensure Octagon MCP is configured in your AI agent (Cursor, Claude Desktop, Windsurf, etc.). See [references/mcp setup.md](references/mcp setup.md) for installation instructions.
Workflow
1. Identify Analysis Parameters
Determine the following before querying:
Ticker : Stock symbol (e.g., AAPL, MSFT, GOOGL)
Records : Number of periods to retrieve (e.g., 5 years)
Period : FY (fiscal year) or Q (quarterly)
2. Execute Query via Octagon MCP
Use the octagon agent tool with a natural language prompt:
MCP Call Format:
3. Expected Output
The agent returns a tabular response with YoY growth percentages:
Year Revenue Growth Cost of Revenue Growth Gross Profit Growth Operating Income Growth Net Income Growth
2024 2.0% 1.5% 3.1% 5.2% 4.8%
2023 2.8% 1.2% 4.5% 8.1% 10.2%
... ... ... ... ... ...
Data Sources : octagon companies agent, octagon financials agent
4. Interpret Results
See [references/interpreting results.md](references/interpreting results.md) for guidance on:
Reading growth percentages
Identifying trends and inflection points
Spotting operating leverage signals
Comparing to industry benchmarks
Example Queries
Basic YoY Analysis:
Quarterly Analysis:
Extended Historical View:
Key Metrics Explained
Metric Definition
Revenue Growth YoY change in total revenue/sales
Cost of Revenue Growth YoY change in direct costs (COGS)
Gross Profit Growth YoY change in Revenue minus COGS
Operating Income Growth YoY change in income from operations
Net Income Growth YoY change in bottom line profit
Analysis Tips
1. Revenue vs Net Income divergence : If Net Income grows faster than Revenue, the company is improving margins or reducing costs.
2. Operating leverage : When Operating Income grows faster than Revenue, fixed costs are being spread over more sales.
3. Margin compression : If Cost of Revenue grows faster than Revenue, margins are declining.
4. Consistency : Look for companies with consistent positive growth across all metrics.
5. Trend reversals : A switch from negative to positive growth often signals a turnaround.