---
name: "Balance sheet growth"
repo: https://github.com/octagonai/skills
source: https://github.com/octagonai/skills/blob/HEAD/skills/balance-sheet-growth/SKILL.md
license: "MIT"
install: "npx skills add octagonai/skills --skill balance-sheet-growth"
page: https://100xlab.com/resources/agent-skills/octagonai-skills--balance-sheet-growth--41hbg5
---

# Balance Sheet Growth

Retrieve and analyze year-over-year growth in key balance sheet 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](references/mcp-setup.md) for installation instructions.

## Query Format

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

**MCP Call:**

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

## Output Format

The agent returns a table with YoY growth percentages:

| Fiscal Year | Total Assets Growth (%) | Total Liabilities Growth (%) | Shareholders' Equity Growth (%) | Cash & Cash Equivalents Growth (%) | Inventories Growth (%) |
|-------------|------------------------|-----------------------------|---------------------------------|-----------------------------------|------------------------|
| 2025 | -1.57 | -7.31 | 29.47 | 12.01 | -21.52 |
| 2024 | 3.51 | 6.05 | -8.36 | -0.07 | 15.08 |
| 2023 | -0.00 | -3.85 | 22.64 | 26.72 | 28.00 |
| 2022 | 0.49 | 4.92 | -19.68 | -32.32 | -24.83 |

**Data Sources:** octagon-companies-agent, octagon-financials-agent

## Key Observations Pattern

After receiving data, generate observations:

1. **Asset base changes**: Track total assets growth/decline and drivers
2. **Leverage trends**: Compare liabilities growth to equity growth
3. **Liquidity position**: Monitor cash and cash equivalents trajectory
4. **Working capital**: Assess inventory management efficiency
5. **Capital structure shifts**: Note significant equity vs liability changes

## Metrics Reference

| Metric | Definition |
|--------|------------|
| Total Assets Growth | YoY change in all company assets |
| Total Liabilities Growth | YoY change in all obligations and debts |
| Shareholders' Equity Growth | YoY change in net worth (Assets - Liabilities) |
| Cash & Cash Equivalents Growth | YoY change in liquid assets |
| Inventories Growth | YoY change in unsold goods and materials |

## Analysis Tips

### Deleveraging Signal
When Liabilities decline while Equity grows:
- Company paying down debt
- Strengthening balance sheet
- Example: Liabilities -7.31%, Equity +29.47%

### Asset-Light Trend
When Assets decline but Equity grows:
- Efficient capital deployment
- Possible divestitures or write-offs
- Focus on return on assets

### Cash Accumulation
When Cash grows faster than Assets:
- Building war chest for M&A or buybacks
- Conservative financial positioning
- May signal limited reinvestment opportunities

### Inventory Management
When Inventories decline while Revenue grows:
- Improved supply chain efficiency
- Just-in-time inventory practices
- Better demand forecasting

### Capital Structure Warning
When Liabilities grow faster than Assets:
- Increasing leverage
- Potential solvency concerns if sustained
- Review debt covenants and maturities

## Follow-up Queries

Based on results, suggest deeper analysis:

- "What drove the significant shareholders' equity growth in [YEAR]?"
- "Analyze [COMPANY]'s debt maturity schedule and refinancing risk"
- "Compare [COMPANY]'s leverage ratios to industry peers"
- "Extract cash flow statement data for [TICKER] to understand cash sources"

---

## Supporting file: marketplace.json

```json
{
  "name": "balance-sheet-growth",
  "description": "Retrieve year-over-year growth in balance sheet items including Total Assets, Total Liabilities, Shareholders Equity, Cash, and Inventories for public companies.",
  "version": "1.0.0",
  "author": "OctagonAI",
  "tags": ["octagon", "balance-sheet", "yoy-growth", "assets", "liabilities", "equity", "financial-analysis", "mcp"],
  "repository": "https://github.com/OctagonAI/skills"
}
```

---

## Supporting file: README.md

# Balance Sheet Growth Skill

Retrieve year-over-year growth in Total Assets, Liabilities, Equity, Cash, and Inventories for public companies using the Octagon MCP server.

## Installation

```bash
npx skills add OctagonAI/skills --skill balance-sheet-growth
```

<details>
<summary>bun</summary>

```bash
bunx skills add OctagonAI/skills --skill balance-sheet-growth
```

</details>

<details>
<summary>pnpm</summary>

```bash
pnpm dlx skills add OctagonAI/skills --skill balance-sheet-growth
```

</details>

## What This Skill Does

This skill retrieves balance sheet growth metrics:

- Total assets growth YoY
- Total liabilities growth
- Shareholders' equity growth
- Cash position changes
- Inventory growth trends

## Example Usage

```
Retrieve YoY growth in Total Assets, Liabilities, Equity for TSLA
```

---

## 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`:

```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 Balance Sheet Growth

## Reading the Output

| Fiscal Year | Total Assets Growth (%) | Total Liabilities Growth (%) | Shareholders' Equity Growth (%) | Cash & Cash Equivalents Growth (%) | Inventories Growth (%) |
|-------------|------------------------|-----------------------------|---------------------------------|-----------------------------------|------------------------|
| 2025 | -1.57 | -7.31 | 29.47 | 12.01 | -21.52 |

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

## Key Patterns

### Deleveraging
When Liabilities Growth < 0 and Equity Growth > 0:
- Company reducing debt burden
- Strengthening financial position
- Often positive for credit ratings

### Leveraging Up
When Liabilities Growth > Assets Growth:
- Taking on more debt relative to assets
- Could be strategic (low rates, M&A) or concerning
- Check purpose of debt increase

### Cash Build
When Cash Growth significantly exceeds Assets Growth:
- Accumulating liquidity
- Preparing for acquisitions, buybacks, or uncertainty
- May indicate lack of reinvestment opportunities

### Working Capital Efficiency
When Inventories decline while business grows:
- Better supply chain management
- Reduced carrying costs
- Improved cash conversion cycle

## Balance Sheet Health Indicators

### Strong Position
- Equity growth outpacing Liabilities growth
- Cash position stable or growing
- Controlled inventory levels

### Warning Signs
- Liabilities growing faster than Assets for multiple years
- Cash declining while Liabilities increase
- Inventory buildup with slowing revenue

## Connecting to Other Statements

Balance sheet changes connect to:

1. **Income Statement**: Net Income flows to Retained Earnings (Equity)
2. **Cash Flow Statement**: Explains Cash changes
3. **Debt Schedule**: Details behind Liabilities changes

## Follow-up Analysis

```
Retrieve cash flow statement data for AAPL for the last 5 fiscal years
```

```
Analyze AAPL's debt maturity schedule and interest coverage ratio
```

```
Compare AAPL's leverage ratios (Debt/Equity, Debt/Assets) to MSFT and GOOGL
```

---

## Supporting file: references/mcp-setup.md

# Octagon MCP Setup for Cursor

## Prerequisites

Install Node.js (includes npm and npx):

**macOS:**
```bash
brew install node
```

**Windows:**
Download from https://nodejs.org/ (LTS version)

Verify:
```bash
node -v && npm -v && npx -v
```

## Get Octagon API Key

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

## 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`

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

## Verify

Refresh MCP server list. Test with:
```
Retrieve the current stock price for AAPL
```

## Documentation

https://docs.octagonagents.com