Income Statement Growth

Retrieve and analyze year-over-year growth in key income statement items for public companies using Octagon MCP.

Prerequisites

Ensure Octagon MCP is configured in your AI agent (Cursor, Claude Desktop, Windsurf, etc.). See references/mcp-setup.md for installation instructions.

Query Format

Retrieve year-over-year growth in key income-statement items for <TICKER>, limited to <N> records and filtered by period <FY|Q>.

MCP Call:

{
  "server": "octagon-mcp",
  "toolName": "octagon-agent",
  "arguments": {
    "prompt": "Retrieve year-over-year growth in key income-statement items for AAPL, limited to 5 records and filtered by period FY"
  }
}

Output Format

The agent returns a table with YoY growth percentages:

Data Source: octagon-financials-agent

Key Observations Pattern

After receiving data, generate observations:

1. Growth acceleration: Identify years with strong growth across all metrics
2. Margin divergence: Note when Net Income growth differs significantly from Revenue growth
3. EPS vs Net Income: Compare EPS growth to Net Income growth (share buybacks impact)
4. Contraction periods: Flag years with negative growth and potential causes

Follow-up Queries

Based on results, suggest deeper analysis:

• "What factors contributed to the significant net income growth in [YEAR] despite moderate revenue growth?"
• "Why did net income decline in [YEAR] despite positive operating income growth?"
• "How did [COMPANY]'s cost management strategies impact gross profit trends?"

Metrics Reference

Analysis Tips

1. EPS outpacing Net Income: Indicates share buyback activity reducing share count
2. Gross Profit > Revenue growth: Margin expansion from pricing power or cost efficiency
3. Operating Income > Gross Profit growth: Operating leverage from fixed cost management
4. Net Income volatility: Often driven by one-time items, taxes, or interest expenses

---

Supporting file: marketplace.json

{
  "name": "income-statement-growth",
  "description": "Retrieve year-over-year growth in income statement items including Revenue, Gross Profit, Operating Income, Net Income, and EPS Diluted for public companies.",
  "version": "1.0.0",
  "author": "OctagonAI",
  "tags": ["octagon", "income-statement", "yoy-growth", "revenue", "eps", "financial-analysis", "mcp"],
  "repository": "https://github.com/OctagonAI/skills"
}

---

Supporting file: README.md

Income Statement Growth Skill

Retrieve year-over-year growth in Revenue, Gross Profit, Operating Income, Net Income, and EPS Diluted for public companies using the Octagon MCP server.

Installation

npx skills add OctagonAI/skills --skill income-statement-growth

<details> <summary>bun</summary>

bunx skills add OctagonAI/skills --skill income-statement-growth

</details> <details> <summary>pnpm</summary>

pnpm dlx skills add OctagonAI/skills --skill income-statement-growth

</details>

What This Skill Does

This skill retrieves income statement growth metrics:

• Revenue growth percentage YoY
• Gross profit growth trends
• Operating income growth
• Net income growth rates
• EPS diluted growth

Example Usage

Retrieve YoY growth in Revenue, Gross Profit, and Net Income for AMZN

---

Octagon MCP Setup

This skill requires the Octagon MCP (https://github.com/OctagonAI/octagon-mcp) server to be configured in your AI agent.

Get Your API Key

1. Sign up at Octagon (https://app.octagonai.co/signup/?redirectToAfterSignup=https://app.octagonai.co/api-keys)
2. Navigate to API Keys from the left menu
3. Generate and save your API key

Configure Cursor

1. Open Cursor Settings → Features > MCP Servers
2. Click + Add New MCP Server
3. Enter:
   • Name: octagon-mcp
   • Type: command
   • Command: env OCTAGON_API_KEY=<your-api-key> npx -y octagon-mcp

Windows: cmd /c "set OCTAGON_API_KEY=<your-api-key> && npx -y octagon-mcp"

Configure Claude Desktop

Add to claude_desktop_config.json:

{
  "mcpServers": {
    "octagon-mcp-server": {
      "command": "npx",
      "args": ["-y", "octagon-mcp@latest"],
      "env": {
        "OCTAGON_API_KEY": "YOUR_API_KEY_HERE"
      }
    }
  }
}

Documentation

• Octagon Docs (https://docs.octagonagents.com)
• Octagon MCP GitHub (https://github.com/OctagonAI/octagon-mcp)

---

Supporting file: references/interpreting-results.md

Interpreting Income Statement Growth

Reading the Output

Positive values = Growth vs prior year Negative values = Decline vs prior year

Key Patterns

Operating Leverage

When Operating Income Growth > Revenue Growth:

• Fixed costs spread over larger revenue base
• Scalable business model

Margin Expansion

When Gross Profit Growth > Revenue Growth:

• Pricing power or cost efficiencies
• Improved product mix

Share Buyback Signal

When EPS Growth > Net Income Growth:

• Company reducing share count
• Capital return to shareholders

Profitability Acceleration

When Net Income Growth > Operating Income Growth > Revenue Growth:

• All metrics improving
• Strong execution

Red Flags

1. Revenue declining, EPS rising: Unsustainable financial engineering
2. Gross Profit lagging Revenue: Margin compression
3. Operating Income negative while others positive: Cost control issues
4. High volatility year-over-year: Inconsistent execution

Generating Observations

After receiving data, note:

1. Which year showed strongest overall performance?
2. Are there divergences between top-line and bottom-line growth?
3. Is EPS growth driven by earnings or buybacks?
4. Any multi-year trends (acceleration/deceleration)?

Follow-up Analysis

Use these queries to dig deeper:

Analyze AAPL's latest earnings call and extract commentary on margin trends

Compare year-over-year growth for AAPL vs MSFT vs GOOGL for the last 3 fiscal years

Extract key risk factors from AAPL's most recent 10-K filing

---

Supporting file: references/mcp-setup.md

Octagon MCP Setup

Get Your Octagon API Key

1. Sign up for a free account at Octagon (https://app.octagonai.co/signup/?redirectToAfterSignup=https://app.octagonai.co/api-keys)
2. After logging in, from left menu, navigate to API Keys
3. Generate a new API key
4. Save the key securely - you'll need it for configuration

Prerequisites

Before installing or running Octagon MCP, you need to have npx (which comes with Node.js and npm) installed on your system.

Mac (macOS)

1. Install Homebrew (if you don't have it):

   /bin/bash -c "$(curl -fsSL https://raw.githubusercontent.com/Homebrew/install/HEAD/install.sh)"
   

2. Install Node.js (includes npm and npx):

   brew install node
   

3. Verify installation:

   node -v
   npm -v
   npx -v
   

Windows

1. Download the Node.js installer:
   • Go to https://nodejs.org/ and download the LTS version for Windows.
2. Run the installer and follow the prompts. This will install Node.js, npm, and npx.
3. Verify installation: Open Command Prompt and run:

   node -v
   npm -v
   npx -v
   

If you see version numbers for all three, you are ready to proceed.

Configure Cursor

1. Open Cursor Settings
2. Go to Features > MCP Servers
3. Click + Add New MCP Server
4. Enter:
   • Name: octagon-mcp
   • Type: command
   • Command: env OCTAGON_API_KEY=<your-api-key> npx -y octagon-mcp

Replace <your-api-key> with your actual Octagon API key.

Windows users: Use this command format instead:

cmd /c "set OCTAGON_API_KEY=<your-api-key> && npx -y octagon-mcp"

After adding, refresh the MCP server list to see the new tools. The Composer Agent will automatically use Octagon MCP when appropriate. Access the Composer via Command+L (Mac), select "Agent" next to the submit button, and enter your query.

Configure Claude Desktop

1. Open Claude Desktop
2. Go to Settings > Developer > Edit Config
3. Add the following to your claude_desktop_config.json:

{
  "mcpServers": {
    "octagon-mcp-server": {
      "command": "npx",
      "args": ["-y", "octagon-mcp@latest"],
      "env": {
        "OCTAGON_API_KEY": "YOUR_API_KEY_HERE"
      }
    }
  }
}

1. Restart Claude for the changes to take effect

Configure Windsurf

Add this to your ./codeium/windsurf/model_config.json:

{
  "mcpServers": {
    "octagon-mcp-server": {
      "command": "npx",
      "args": ["-y", "octagon-mcp@latest"],
      "env": {
        "OCTAGON_API_KEY": "YOUR_API_KEY_HERE"
      }
    }
  }
}

Verify Setup

1. Refresh the MCP server list
2. The octagon-agent tool should appear in available tools
3. Test with a simple query:

   Retrieve the current stock price for AAPL
   

Available Tools

Troubleshooting

API Key Issues: Verify the key is correctly set in the command string with no extra spaces.

Connection Issues: Ensure you have internet connectivity and the Octagon API is accessible.

Rate Limiting: Reduce query frequency if encountering rate limit errors.

Documentation

Full documentation: https://docs.octagonagents.com